Short (or Short Position) is a trading technique employed by investors when they anticipate that the price of a security will decline in the near future. It involves the sale of a security up front without actually owning it at the time, with the promise to buy it back at a later date. This strategy is often used as a means of hedging or speculating against an asset, so as to minimize possible losses of an existing long position.

The main benefit of shorting is it allows an investor to make a profit when a security’s price declines. When using a short position, the investor will sell shares of a security they do not actually own. They are required to borrow the stock from another investor or broker in order to deliver it to their buyer. Before the investor's short sale transaction is complete they must obtain the borrowed shares. This is usually done through an arrangement with a broker where the investor pays a fee to borrow the shares.

If the price of the security falls the investor can purchase the stock back at the lower price, close the position and pocket the difference for a profit. The downside is that if the price of the security rises instead of falls, the investor must buy it back at the higher price and will not be able to capture any of the increase in value. A short position also carries the risk of unlimited losses as the security can continue to appreciate in value to an indefinite level.

The use of short positions can be beneficial when used correctly as it gives investors increased purchasing power and options when trading. It also allows the investor to take advantage of a falling market and generate profits in a declining stock. However, the technique is usually only successful with a sound understanding of the markets and the security in question. Therefore, shorting should only be undertaken by experienced investors with thorough research and analysis in place.