Short position

An investor's position where the number of contracts sold exceeds the number of contracts bought. For example, someone who is short in a stock does not own the stock, but is under the obligation to deliver shares of the stock at some future time. Someone who has a short position is a net seller.

The result of selling a financial instrument not owned at the time of sale. This strategy is undertaken when the short seller anticipates a price decline, in which case the seller can make delivery on the short sale with securities subsequently purchased at a lower price, thereby earning a profit roughly equal to the spread.

The opposite of a long position.