HomeDefinitionsCompareDebt Short positionThe financial definition for Short position:Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop. Similar MatchesClear a positionClear a positionTo eliminate a long or short position, leaving no ownership or obligation. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Further SuggestionsDiscretionary PropositionInterpositioning Long position Long position in an option Miller and Modiglianis irrelevance proposition Modigliani and Miller Proposition I Net position Click to compare definitions of Short position Click to view definitions beginning sh |