short position

Definitions (3)
Related Terms
1. Accounting: Net liability position created by the excess of what is owed over what is owned.
2. Foreign exchange trading: Situation where projected outflows of a currency exceed its projected inflows.
3. Securities trading: Situation where a dealer or investor (called short seller) sells commodities, financial instruments, shares, etc., which are to be delivered on a future date at a certain price, but which he or she does not own at the time of sale. Short sellers are 'bear' speculators who expect to purchase the item (at the time of delivery) at a price lower than at which it was sold.
Opposite of long position. See also short sale.

Email Print Embed