Glossary

Short position

Market basics

A short position is a position opened by selling. MetaTrader 5 describes it as a sale made in the expectation that the price will fall.

Explanation

The help page calls a short position an obligation to supply the instrument in the expectation of a lower price. Take profit on a short is set below the Ask and checked on the Ask. Stop loss on a short is set above the Ask and checked on the Ask. Selling short on a CFD or spread bet is a derivative exposure. It is not the same thing as borrowing a share, and this page does not describe stock-loan mechanics.

This page explains published terms for education and reference. It is not financial, investment, tax, or trading advice, and it does not recommend a firm, product, or strategy.

Related terms

Sources and last check

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