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| Stock and Option Trader's Tools |
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Short Position |
| A position with a net negative quantity. In the stock and option markets, it is possible to sell a security you do not already own. A short sale of a stock is effectively borrowing a stock with the obligation to buy it back later, hopefully at a lower price. In the options market, short selling an option is writing a contract to deliver the underlying security, if the option buyer exercises the option.
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| Optionistics is not a registered investment advisor or
broker-dealer. We do not make recommendations as to particular
securities or derivative instruments, and do not advocate the
purchase or sale of any security or investment by you or any
other individual. By continuing to use this site, you agree to
read and abide by the full disclaimer.
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