TeachMeFinance.com - explain short
short -- the activity of selling something prior to owning it. In securities markets, selling short means a trader sells a futures contract or makes a forward contract for the sale of a cash commodity or instrument without owning what is sold. The trader must then buy an identical amount in order to deliver what has been sold. The trader will make a profit in a market with declining prices, since he will buy for a price less than the previous price at which he sold. See long.
long -- refers to the ownership of stock, futures, cash commodities or financial instruments, specifically to the purchase of such securities with the intention of holding them in anticipation of a price increase. "I am long 100 Freddie Mac," means the investor owns 100 shares of Freddie Mac stock. See short.
Short -- One who has sold a stock which he does not possess and has borrowed the stock for delivery to the buyer is short of that stock. One who is short of several stocks is said to be short of the market. One who is short is a bear.
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