A short position is a trade taken with the intended direction to the downside or a decrease in price. An entry that is classified as a short position can be entered in two ways for me. Either a limit order above current price to sell once reached or a stop order below to sell.
The first would be something like this:
The second, an order below price is like below:
Price trading above placed entry to sell at the market at a move below order.
Both are very much valid entry attempts though only one of these fits my trading style. The one that I use in the majority of my trades is the below current price method. I normally look to enter at the break of the previous bar.
FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.