Chapter 02 · Section 2.1
Short Position Expectations
An investor who enters into a short position in the securities, forwards, futures, or currency markets:
a) expects prices to rise.
b) expects prices to fall.
c) expects prices to remain stable.
Entering into a short position means having a net liability -- selling more than you have bought.
An investor may profit by buying at a low price and selling at a higher price. But he may also profit by selling before buying.