"Short" or "Short-selling" is an investment term used to
describe a stock which an investor expects to fall in price in order to make a
profit (i.e., Short high - Cover low). "Position" is an investment term
used to signify an active stock in an investor's portfolio (i.e., the
value of the investor's investment in the stock is subject to change in value
as the market price dictates). Therefore, a "Short Position" is a
stock for which an investor has executed a Short-sell, but has not yet
Covered.
If you Short 200 shares of MSFT and you have not Covered them yet, it can be
said that you have a Short Position in MSFT. Once you Cover those MSFT shares,
you will no longer have a Short Position in MSFT. However, you may refer to
your Former Short Position in MSFT (if you wish to discuss the Position after
the fact).
Short-selling is still a foreign concept to many investors. Yet, if you are
going to take advantage of both rising and falling markets, you need this
vehicle for your arsenal. Weinstein does a masterful job of discussing the
concept in his book, Secrets for Profiting in Bull and Bear Markets.
