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  1. Home
  2. /Glossary
  3. /Short Position
Back to Glossary
trading

Short Position

A trade that profits when an asset's price decreases.

Definition

A trade that profits when an asset's price decreases. You're betting against the asset. In crypto, you can short on derivatives exchanges using margin or perpetual swaps.

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Related Terms

Long Position

A trade that profits when an asset's price increases.

Derivatives

Financial contracts whose value is based on an underlying asset.

Margin

Borrowed money used to increase trading position size.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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