Short Sale and the Like

Short Position

• Benefit if a security's price decreases.

Short - http://riskinstitute.ch/00012816.htm

Short Position can be constructed by:

1. Short-sale a security, i.e. borrow others' securities and sell them, and return the securities at a later time. Short-sale via brokerage firms is actually 'using' other clients' securities.

(Synthetic short position)

1. Sale of uncovered call option.
2. Purchase of put.
3. Selling of forward/future

Short Sale - http://riskinstitute.ch/00012816.htm
Synthetic Short - http://riskinstitute.ch/00013076.htm