Uncovered Options Trading System

Options Autotrading
143 signals - 137 winners

Options Glossary - Most Used Terms


Short Stock Position

A strategy that profits from a stock price decline. It is initiated by borrowing stock from a broker-dealer and selling it in the open market. This strategy is closed (covered) at a later date by buying back the stock and returning it to the lending broker-dealer.

See Also:

Position: The total of a trader's open contracts - the combined total of antrader's open option contracts (calls and/or puts) and long or short stock.

Short: The selling of a security, contract or commodity not owned by the seller.

Stock: A share of a company's stock translates into ownership of part the company.

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