Short Position
A short position involves selling an option or asset to take a view on price movement. In options, a short seller collects the premium and takes on an obligation.
The seller hopes the option will expire worthless to keep the premium. This position requires maintaining collateral or margin.
It carries higher risk than buying, as potential losses can be substantial.
Glossary
Short Selling Risks
Exposure ⎊ Short selling in cryptocurrency, options, and derivatives introduces substantial exposure to uncapped loss potential, differing significantly from traditional equity markets due to inherent volatility and the potential for rapid, exponential price increases in the underlying asset.
Short Term Trading Goals
Action ⎊ Short term trading goals, within cryptocurrency, options, and derivatives, necessitate defined entry and exit criteria predicated on quantifiable market signals.