Short Position
Short Position is a bet that an asset's price will decrease, by selling a borrowed asset or cryptocurrency that must be returned by closing the position.
Short Position is a bet that an asset's price will decrease, by selling a borrowed asset or cryptocurrency that must be returned by closing the position.
A short position refers to a trading technique where an investor sells a borrowed asset with the expectation that its price will drop in the future. The investor hopes to buy the asset back at a lower price and return it to the lender while profiting from the price difference. Shorting is often done with stocks but it can also apply to commodities, forex, and cryptocurrency markets. However, shorting is risky as losses can be infinite if the asset's price keeps increasing.
If a trader believes that the price of Bitcoin will fall, they may decide to take a short position on it.
