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LESSON 15 OF 16 · 2 MIN

Short selling and short disclosures

IN SHORTA short seller borrows shares and sells them, hoping to buy back cheaper. In the UK, large short positions must be disclosed.

Shorting is betting on a fall: borrow shares, sell them, and later buy them back to return. If the price falls you profit; if it rises your loss has no ceiling.

In the UK, large short positions must be reported to the Financial Conduct Authority (FCA), and the larger ones are made public. The exact rules have changed over time, so TradingFloor AI shows where each figure came from and its date.

KEY POINTA falling short position is not proof of covering today. Disclosures are dated and can lag. TradingFloor AI shows the reporting date with each change.

Heavy shorting tells you some professionals expect a fall. If good news arrives, short sellers buying back can push the price up faster, a short squeeze.

Try it: See short positions on a company's terminal.

Open a stock

Quick check

1. What does a short seller hope for?
2. Where do UK short-position figures come from?
3. Does a reduced short position prove covering today?

Education only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.