Short position

Short position,

Definition of Short position:

  1. 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.

  2. Foreign exchange trading: Situation where projected outflows of a currency exceed its projected inflows.

  3. Accounting: Net liability position created by the excess of what is owed over what is owned.

Meaning of Short position & Short position Definition