Short Position Definition

A short position is a trade opened by selling an asset with the expectation that its price will fall.

What is a Short Position?

Profit on a short position is realized if the asset's price decreases after entry.

Short positions carry the risk of losses if the price rises instead of falling.

Selling a CFD on a stock in anticipation of a price decline creates a short position.

Scalping is a short-term trading strategy that aims to profit from very small price movements, often within seconds or minutes.

A sector is a group of companies operating in the same segment of the economy, such as technology, energy, or healthcare.

Securities are tradable financial instruments representing ownership, a creditor relationship, or rights to ownership, such as stocks and bonds.