Definition of Short Position
A trade opened by selling a currency pair, expecting the price to fall. You profit from a short position when the market moves down from your entry price.
At a glance
Term
Short Position
URL slug
short-position
Category
General
Short answer
A trade opened by selling a currency pair, expecting the price to fall.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Short Position” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Short Position” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Short Position” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A trade opened by selling a currency pair, expecting the price to fall.
Knowing the precise definition of “Short Position” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Short Position” as loose slang while your broker/platform specification defines it more narrowly.