# Short

> A position that profits when the price goes down.

Canonical URL: https://fudfomo.co/glossary/short
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Going short means borrowing an asset to sell now, with the plan to buy it back later at a lower price. The difference is your profit. In crypto, most retail shorts are taken through derivatives like perpetuals rather than physical borrowing.

Shorts have unlimited theoretical loss because the price can keep rising, which is one reason most platforms require collateral and offer automatic liquidations.

## Related terms

- [Long](https://fudfomo.co/glossary/long): A position that profits when the price goes up.
- [Leverage](https://fudfomo.co/glossary/leverage): Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.
- [Perpetual Futures](https://fudfomo.co/glossary/perpetual-futures): A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.
- [Futures](https://fudfomo.co/glossary/futures): A contract to buy or sell an asset at a fixed price on a future date.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co