Taking a short position on stock
A "short" position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value. If the price drops, you Shorting stock, also known as short selling, involves the sale of stock that the seller does not own, or shares that the seller has taken on loan from a broker. 20 Dec 2019 Now you need to take this number with a grain of salt. The reason is that this ratio assumes the short position is the only buyer of the stock.