Short Position
Selling a security with the promise to buy it back later to close the position. Short positions let traders speculate on falling prices and profit in declining markets.
Related terms
Long Position
Buying a currency or asset in the expectation that its price will increase. In FX you go long on the base currency you purchase and short on the quote currency you sell: buying EUR/GBP means going long euros and short sterling.
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Traders who have sold, or shorted, a product, or those who are bearish on the market.
Read full definitionShort Covering
Closing out a short position by buying back the security that was sold short. For short covering to be profitable, the security must have declined in price since the short was opened.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
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A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
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Traders who expect prices to rise and who may be holding long positions.
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