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Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by thedaemon on Tuesday September 18, 2018 @12:12PM (#18016474)
Please define shorts. Google was unable to figure it out.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by mcbits on Tuesday September 18, 2018 @12:16PM (#18016525)
Short sellers. People who sell something they don't own, speculating that they will be able to buy it later at a lower price.

If so, they make money. If not and the price goes up a bit, some shorts are forced to buy at the higher price to limit their losses. That pushes the price up further, forcing more shorts to buy, etc., causing a "short squeeze" where the price rapidly shoots up very high, "destroying" a lot of shorts.

Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by kasey_junk on Tuesday September 18, 2018 @01:06PM (#18017026)
Pedantically shorting doesn’t have to be borrowing the underlying instrument. Put options are another way to trade on the idea that a stock will go down. I’d actually bet it’s the more common way. It would still be colloquially referred to as being short.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by mikestew on Tuesday September 18, 2018 @01:56PM (#18017584)
That's actually the opposite of "pedantically" given that you're playing loose with the definition. Pedantically, shorting is selling a financial instrument you don't own, with the idea (though it is not a requirement to fit the definition) that you'll give it back later by buying at a price lower than it is now.

What you described is options trading, one method of which hedges against declines in stock price. Yeah, one could take a "short" position by buying puts, but it can be argued that a short position is not what puts were originally designed for. In contrast to short sellers who obviously intend for the price to go down, or they won't make any money.

I do question whether puts are the "more common way" given that they have an expiration. You can hold on to a short sell as long as you can pay the interest and the loaning party doesn't want their shares back.

Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by Boxxed on Tuesday September 18, 2018 @02:39PM (#18017950)
Arguing over the definition of Pedantic. I think we've reached peak HN.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by JumpCrisscross on Tuesday September 18, 2018 @06:31PM (#18019847)
"Short selling" refers to selling borrowed shares. "Being short" is the opposite of "being long" and refers to exposure, irrespective of the instruments or methods used to attain it. TL; DR one can be short through options or short selling.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by whatok on Tuesday September 18, 2018 @02:20PM (#18017785)
Pedantically, I would agree with your definition if it was phrased as "short selling" and would ask for more clarification ("via what?") if someone said they had a short position.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by soohyung on Tuesday September 18, 2018 @12:31PM (#18016688)
A short, or short position, is selling first and then buying later. The trader's expectation is that the price will drop; the price they sell at is higher than the price they buy it at later. The difference between the sale price and the buy price produces a profit or loss. [1]

[1] https://www.investopedia.com/terms/s/short.asp

Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by prolikewh0a on Tuesday September 18, 2018 @12:29PM (#18016667)
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by Invictus0 on Tuesday September 18, 2018 @12:14PM (#18016507)
Short-sellers: people that bet that the price of Tesla stock would go down.
Re:Tesla Faces U.S. Criminal Probe Over Musk Statements by ComputerGuru on Tuesday September 18, 2018 @12:14PM (#18016497)
People short selling the stock.