Short Position
A position that profits when an asset's price decreases.
In-Depth Explanation
Shorting bets against an asset. In DeFi, you can short via perps, borrowing (borrow ETH, sell it, repay later at lower price), or options. Shorting is riskier than going long—losses are theoretically unlimited if price rises indefinitely, while gains are capped at 100% if price goes to zero.
Related Terms
Long Position
A position that profits when an asset's price increases.
Leverage
Using borrowed capital to amplify potential returns (and losses) on an investment position.
Perpetual Futures
PerpsFutures contracts with no expiration date that track an underlying asset's price through a funding rate mechanism.
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.