Back to glossary
Short Position
A short position is a trading strategy in which an investor sells a borrowed asset, such as a cryptocurrency or stock, with the expectation that the price of the asset will decrease in value. Investor hope to buy back the asset at a lower price and return it to the lender, thereby profiting from the difference in price.
in order to hold a short position in crypto, investors must have access to a crypto exchange or trading platform that offers margin trading or derivatives like futures or options. Then, after borrowing crypto from the exchange or other platform users, they can sell it on the open market and watch for a price drop.