Gross vs net short position

Gross is every short exposure added up; net subtracts long exposure in the same company. Disclosure regimes report net.

A fund can be short a company's shares while long its bonds, its convertible bonds or an index that contains it. The UK and EU regimes ask for the net figure, which is why a firm known to run a large short book can show a modest disclosed position: much of it is offset. FINRA's US count is closer to gross, because it counts shares sold short on brokers' books rather than any holder's overall economic position.

Related terms

Net short position: A holder's short exposure to a company minus their long exposure, expressed as a percentage of the company's issued share capital.

FINRA short interest (US): The US measure: broker-dealers report the short positions on their books as of two settlement dates a month, and FINRA publishes one consolidated total per security about nine business days later.