What is short position?
Also known as: Going short, Shorting
Definition
A short position profits when the price of the asset falls.
In crypto, shorting is usually done with perpetual futures or margin borrowing. Because price can in theory rise without limit, a short needs a hard stop loss and a sized position even more than a long does.
Shorts are used to profit from a downturn or to hedge existing long holdings, so that a falling market reduces rather than multiplies the portfolio's losses.
Related terms
General education only. Not financial advice.