What Is a Short Position?

Short position (bear covering / Short Position)

Short position

Right!

Short position (bear covering / Short Position)

Short position: An investment position resulting from the sale of a short position. Since this position has not yet been written off, it can profit from the decline in market prices. That is, investors expected to sell a large amount of the selling price in advance because the price is expected to fall or make the selling more than the purchase.

Chinese name

Short position

Foreign name

bear covering / Short Position

Meaning

Investment position resulting from short selling

Related claims

Closed positions, position borrowing

Position is a term often used in the financial industry and is often used in financial, securities, stock, and futures trading. For example, when opening a position in futures trading, the position held after buying a futures contract is called a long position, referred to as long; the position held after selling a futures contract is called a short position, referred to as short. The difference between a long open commodity contract and an open short contract is called a net position. This method is only used in futures trading, and it is not yet used in spot trading. In foreign currency transactions, opening a position means opening. Opening is also called exposure, which is the act of buying one currency and selling another currency at the same time. After opening, one currency is long (long) and another (short) is short. Choosing an appropriate exchange rate level and timing to establish a position is a prerequisite for profitability. If the time to enter the market is better, the chance of profit is greater; on the contrary, if the time to enter the market is improper, it is easy to lose money. The net position is the difference between the transaction of one currency and another currency obtained after the opening. In addition, in the financial industry, there are also statements such as leveling positions and position borrowing.