DictionaryshortTrading on a price decline
noun / adjective / verb

short

a financial position taken to profit from falling prices

The trader shorts the stock, expecting its price to fall.

Etymology

Short describes selling assets one does not currently own, leaving an obligation to supply them. A short position profits if they can later be bought more cheaply.

More examples

  • Her short position gains value when the shares decline.
  • He closes the short before the market rebounds.
  • The fund lost money on several shorts last quarter.

Forms

short · shorts · shorted · shorting