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Home/Glossary/Short (short selling)
Trading

Short (short selling)

Also called: shorting · short position

In shortA position that profits when the price goes down.

In crypto you usually short with perpetual futures. Losses on a short have no ceiling in theory, because a price can keep rising. Too many shorts can fuel a short squeeze.

← ShillAll terms A–ZShort squeeze / long squeeze →

Related terms

  • Long (going long)A position that profits when the price goes up.
  • Short squeeze / long squeezeA sharp move that forces crowded traders on one side to close their positions, pushing the price further the same way.
  • Funding rateA periodic payment between long and short traders that keeps perpetual futures prices close to the spot price.
  • Perpetual futures (perps)Futures contracts with no expiry date, kept close to the spot price by regular funding payments.
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