What is a short position?

Today, I will try to explain to you the benefits and harms of short positions in line with my research and information.

A short position refers to a situation where an investor executes a short position on a particular asset. The purpose of this position is to try to make a profit on an asset that is predicted to decrease in value. In a short position, the investor expects the value of the relevant asset to decrease over time. The investor's intention here is to sell the asset at a high price and buy it back at a lower price. This position is generally preferred when the investor has a negative opinion about an asset or believes that the market will decline.

Benefits:
Investors with short positions can open long positions to protect themselves. This limits the losses that can be experienced.
Short positioning is a strategy used by some investors who expect prices to fall and are bearish.
The difference between the selling price and the buyback price determines the profit from the position
Harms:

1
The risk of a short position is theoretically unlimited because prices can rise indefinitely
2 However, the profit of the short position is limited to the selling price.
3 A short position has limited profit and theoretically unlimited risk potential

I hope this limited knowledge will be useful to you.