Definitions for shorted
short·ed

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1. shorted

   In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. There are a number of ways of achieving a short position. The most fundamental method is "physical" selling short or short-selling, which involves borrowing assets (often securities such as shares or bonds) and selling them. The investor will later purchase the same number of the same type of securities in order to return them to the lender. If the price has fallen in the meantime, the investor will have made a profit equal to the difference. Conversely, if the price has risen then the investor will bear a loss. The short seller must usually pay a fee to borrow the securities (charged at a particular rate over time, similar to an interest payment), and reimburse the lender for any cash returns such as dividends that were due during the period of lease. Short positions can also be achieved through futures, forwards or options, where the investor can assume an obligation or a right to sell an asset at a future date at a price that is fixed at the time the contract is created. If the price of the asset falls below the agreed price, then the asset can be bought at the lower price before immediately being sold at the higher price specified in the forward or option contract. A short position can also be achieved through certain types of swap, such as contracts for differences. These are agreements between two parties to pay each other the difference if the price of an asset rises or falls, under which the party that will benefit if the price falls will have a short position. Because a short seller can incur a liability to the lender if the price rises, and because a short sale is normally done through a broker, a short seller is typically required to post margin to its broker as collateral to ensure that any such liabilities can be met, and to post additional margin if losses begin to accrue. For analogous reasons, short positions in derivatives also usually involve the posting of margin with the counterparty. Any failure to post margin promptly would prompt the broker or counterparty to close the position. Short selling is an especially systematic and common practice in public securities, futures or currency markets that are fungible and reasonably liquid. A short sale may have a variety of objectives. Speculators may sell short hoping to realize a profit on an instrument that appears overvalued, just as long investors or speculators hope to profit from a rise in the price of an instrument that appears undervalued. Alternatively, traders or fund managers may use offsetting short positions to hedge certain risks that exist in a long position or a portfolio. Research indicates that banning short selling is ineffective and has negative effects on markets. Nevertheless, short selling is subject to criticism and periodically faces hostility from society and policymakers.

Anagrams for shorted »

1. dehorts

How to pronounce shorted?

1. Alex

   US English

   David

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   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

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   Veena

   Indian

   Priya

   Indian

   Neerja

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   Zira

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   Oliver

   British

   Wendy

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   Fred

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   Tessa

   South African

How to say shorted in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of shorted in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of shorted in Pythagorean Numerology is: 8

Examples of shorted in a Sentence

1. Yutaka Miura:

   Retail investors who had shorted stocks are eager to buy back if the Nikkei falls near 17,500.

2. Chris Jarvis:

   With the worst of the bad news priced in following last weeks capitulation trade, a very shorted oil market has traders running for cover, we continue to believe the pressures that have created this downdraft for oil prices are beginning to deflate and subside. Aggressive short traders are now paying the price.

3. Masashi Oda:

   One of the two big persistent concerns has faded, so investors are taking risks, short-covering by those who had shorted stocks on those worries will likely support the market for a while.

4. Chris Jarvis:

   A severely oversold and shorted oil market is creating a bid for covering in U.S. crude.

5. Per Wullf:

   We have been working for some months with a refinancing plan. We have run it by our board as we said during our (fourth-quarter-results conference) call. Now, people are realising that we have started, those who have shorted the share are beginning to panic and see that the shareholders may succeed.

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