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short account

short account

8.8
An account with a broker that lets you sell stocks you do not own to buy back for less
  • noun
  • Specialized
translation icon : cuenta corta
  • He opened a short account to profit from falling stock prices.

Examples

  • A short account requires strict margin maintenance to avoid a margin call.

  • Many experienced traders maintain a short account as part of their investment strategy.

  • He opened a short account to invest in stocks.

  • Many investors prefer a short account for quick trades.

  • A short account allows investors to bet against stocks they believe will decline in value.

  • To maximize their potential gains, traders often use a short account when they expect market downturns.

  • Using a short account, she was able to capitalize on the stock's drop within a matter of days.

Surface Forms

short account singular

Morphology

short + account

The noun phrase is a straightforward adjective + noun subtype: "short" (in the financial sense of holding or selling short) specifies the kind of "account," so the overall meaning — an account used for short-selling — is directly derivable from the constituents. It is a domain-specific term, but given knowledge of the financial sense of "short," the composition follows normal English patterns and is therefore transparent.

Etymology

The term short account comes from the idea of being short of the shares: you 'sell something you do not own' now and hope to buy it back later at a lower price. So, a short account is an account for these trades, used by investors who try to make money when prices fall.