1. Home
  2. Academy
  3. Glossary
  4. Short Position
Market Basics

Short Position

Also called: Going short, Short, Short selling

// Definition

A short position is a trade that profits when price goes down.

Explained simply

Going short means selling first, expecting to buy back later at a lower price. In crypto this is usually done with futures contracts.

Shorting carries extra risk because price can, in theory, keep rising without limit, so a stop-loss is essential.

Tip

Short setups line up best in downtrends and at resistance.

For education only, not financial advice. Trading is risky and you can lose money.

Watched the lesson? Now practise it.

Put each concept to work inside the TradingGain app, without risking real money.

  • Paper trading with a real liquidation engine
  • 80-lesson in-app course with a completion certificate
  • Live crypto and gold signals to study in real time