Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Short.

A short position is created when a trader sells an asset or security with the intention of repurchasing it later.  A trader may take a short position on a security if they believe that the price of that security is likely to decrease substantially in the near future.  A short trade is initiated by selling before buying with the intent to repurchase.  A fundamental problem with short selling is the potential for unlimited losses.  When you purchase a stock (or take a long position), you can never lose more than your initially invested capital.  But if you short a stock at 10$, the most you could make on that transaction is $10.  But if the stock goes up to $1,000, you’d have to pay $1,000 to close your initial $10 position.