What are investment positions?
Long--You buy securities – most common
Short--You sell securities that you do not own
You think the price of a security will fall
The Broker loans shares to you so you can sell
them at the current high price
If the price does fall, then you can buy these
shares back at lower prices and return the
borrowed shares to the broker.
A short can be risky since long-run trend in prices
is up.