A short, or short position, is selling first and then buying later. The trader's expectation is that the price will drop; the price they sell at is higher than

A short, or short position, is selling first and then buying later. The trader's expectation is that the price will drop; the price they sell at is higher than the price they buy it at later. The difference between the sale price and the buy price produces a profit or loss. [1] [1] https://www.investopedia.com/terms/s/short.asp https://www.investopedia.com/terms/s/short.asp