A short position can also be created through a futures contract, forward contract, or option contract, by which the short seller assumes an obligation or right to sell an asset at a future date at a price stated in the contract. If the price of the asset falls below the contract price, the short seller can buy it at the lower market value and immediately sell it at the higher price specified in the contract. A short position can also be achieved through certain types of swap, such as a contract for difference. This is an agreement between two parties to pay each other the difference if the price of an asset rises or falls, under which the party that will benefit if the price falls will have a short position.
A short position can also be created through a futures contract forward contract or option contract by which the short seller assumes an obligation or right to sell an asset at a future date at a price stated in the contract If the price of the asset falls below the contract price the short seller can buy it at the lower market value and immediately sell it at the higher price specified in the contract A short position can also be achieved through certain types of swap such as a contract for difference This is an agreement between two parties to pay each other the difference if the price of an asset rises or falls under which the party that will benefit if the price falls will have a short position