Short position

If you sell stock short and have not yet repurchased shares to replace the ones you borrowed, you are said to have a short position in that stock.

Similarly, if you sell an options contract that commits you to meet the terms of the contract at some date in the future if the option is exercised, you have a short position in that contract.

• The selling side of the open futures contract;
• A trader whose net position in the futures market shows an excess of open sales over open purchases.