What is a short position?
Last updated: 12 August 2026
Opening a short position – also known as ‘short selling’ or ‘going short’ – involves borrowing an asset, selling it, and then purchasing it back later at a lower price.
Trading on etoro is based on strategy and sentiment:
- An investor opens a buy position when they believe that the price of the instrument will rise.
- An investor opens a short position when they believe that the price of the instrument will fall.
On the etoro platform, short selling is done using a Contract for Difference (CFD).
Like all trading platforms, prices on etoro have a spread, meaning that the price when you open a position is different from the price when you close a position. The ask (buy) price is always higher than the bid (sell) price.
When you open a short trade, it opens at the bid (sell) price. The position increases in value as the asset’s price goes down, or decreases in value as the asset’s price goes up. A short trade closes at the ask (buy) price.
For more information on how short selling works, visit the etoro Academy.
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