short positions

Wagering on decline

Short positions are investments that profit when an asset's price falls.

An investor borrows shares, sells them immediately, then buys them back later at a hopefully lower price to return to the lender—pocketing the difference.

Hedge funds built massive short positions against the housing market before the 2008 crash.

The strategy carries unlimited risk since prices can rise indefinitely.

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speculations · margin calls · equities · securities · market makers · contrarian · hedge funds · commodity trading · securities trading · financial markets · cover · derivatives · market volatility · spread betting · margin trading · GameStop · meme stocks · futures contracts

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investment direction

short positionslong positions

Owned securities anticipating appreciation

going long · long exposure · equity stakes

investment time horizon and commitment

short positionsstrategic positions

Locations offering tactical advantage

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