Short

A position that profits if price falls.

In plain English

Selling something you do not own — borrowed, or via a derivative — to buy it back cheaper. Because price has no ceiling, the theoretical loss on an unhedged short has no ceiling either.

Example

Short 1 unit at 100: at 90 you are up 10, at 150 you are down 50.

Trading BasicsFutures Trading

See also

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