Finance

Financial instrument

Share, Bond, Forex

Security

Volatility

Share

Bond

Option

Long

Short

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.

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.

Futures contract

Forward contract

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