Short

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The state of having sold a stock or futures contract without covering it. Being short is also known as "taking a short position." It is the opposite of being long (or having a long position).

(Also see: short sale)

A short seller sells a borrowed security, commodity or currency with the expectation that it will go down in value. The investor must eventually return the borrowed stock by buying it back on the open market. If the investor can buy it for less than he or she sold it, he makes a profit.

In the context of options, it is the sale (also known as "writing") of an options contract.

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