short position


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Related to short position: Long position, short selling

Short position

Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop.

Short Position

The sale of a security or derivative, or the state of having sold one or the other. It is important to note that a short position is not closed, and is applied only to sales where further action may be required. For example, one who has borrowed securities and has then sold them is said to be have a short position with respect to that security, because he/she must eventually return an equivalent amount of the borrowed securities. Likewise, one who has sold (or written) an option is in a short position, because the option may be exercised at a later date. See also: Long position, Close a position.

short position

1. A net investment position in a security in which the security has been borrowed and sold but not yet replaced. Essentially, it is a short sale that has not been covered. Also called short. Compare long position.
2. An investment position in which the investor either has written an option or has sold a commodity contract, with the obligation remaining outstanding. Also called short.

Short position.

If you sell stock short and have not yet repurchased shares to replace the ones you borrowed, you are said to have a short position in that stock.

Similarly, if you sell an options contract that commits you to meet the terms of the contract at some date in the future if the option is exercised, you have a short position in that contract.

short position

a situation where a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling more than he is buying so that his working stock of the item becomes depleted (i.e. runs short).

short position

a situation where a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling more than he is buying so that his working stock of the item becomes depleted (i.e. runs short). Contrast LONG POSITION.
References in periodicals archive ?
And in Brent, hedge funds cut short positions by 19 million barrels, the largest one-week reduction since January.
AiAThe speculative short position is a recipe for a massive short covering rally,AiA said a London-based broker.
(2) Hedge funds have established large short positions in crude of 300 million barrels, but past experience suggests the maximum short position could be at least 390 million, indicating there is more scope for short-selling to push prices lower.
was censured by FINRA and fined $130,000 over short position reporting failures and was ordered to revise its written supervisory procedures (WSPs) on the matter.
Had T closed the short position using the 1,000 shares purchased in 1995 rather than the newly purchased shares, or had T established a second short position as to the ABC stock before March 16, 1999, the 60-day requirement would not have been met; a constructive sale would have occurred on Jan.
But the average short position of those who remain has been almost halved to 1.58mn barrels, down from 2.86mn.
For example, a taxpayer who holds appreciated stock and enters into a short position (or an equity swap) with respect to that stock would immediately recognize any gain inherent in the stock.
Tesla's short position is up 56.3% this year to 39.9 million shares.
Shares of Herbalife Nutrition (HLF) are on the rise after Citi analyst Beth Kite upgraded the stock to Buy noting that a lot has happened in 2018, including capital allocation announcements, executive changes, and Bill Ackman having closed out his well-publicized short position. The analyst also told investors that she sees upside ahead as Herbalife executes a tender offer and refinances its debt to reinvest in the business and repurchase shares in 2019.
Yongan Futures, which is associated with another big fund player, Dunhe Investment, was the largest short position holder at the time.
It utilizes a carry trade strategy, selling low-interest currencies on a short position and buying high-interest currencies on a long position.
SAR rules would dictate entering into a long position when the oscillator crosses above 0, and reversing into a short position when the oscillator crosses below 0.