Market mechanics · Rookie
Short position
What does Short position mean?
A short position has negative directional exposure to an instrument’s price. It generally benefits when the price falls, before costs and other contract effects.
Example
Selling at 80 and buying back at 77 produces a three-unit price gain.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Shorting through a derivative has different mechanics from borrowing and selling shares.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.