A short position is a sold position whose price exposure commonly benefits when the relevant price falls. The mechanism matters: selling borrowed coins on spot creates a repayment obligation, while selling a futures contract creates contractual exposure without necessarily borrowing coins.
A linear futures example
Suppose a trader shorts a hypothetical linear contract representing one token at 100 USDT and closes at 85 USDT. Trading profit is 15 USDT. Closing at 115 USDT instead produces a 15 USDT loss. Fees, funding and collateral changes are excluded.
A buy order can close a short, but whether it reduces the existing position or opens a separate long depends on position mode and order instructions.
Risks beyond direction
An underlying asset’s price can rise substantially, so a short can produce large losses and face liquidation when collateral becomes insufficient. Borrowed-asset shorts can also incur interest and recall risk; perpetual shorts may pay or receive funding.
“Short option” means an option was sold. Selling a put has different directional risk from selling a call, so the short label alone does not establish a bearish view on the underlying.