Basics
What Is Short Token (S Token)?
A token that gains value when the underlying asset price decreases.
Definition
A Short token is bearish exposure in token form. The underlying falls, the Short token rises. Like the Long, it is always created as half of a pair.
How it works
Short tokens move inversely to the oracle price. Gold drops 10% and GOLD-S is worth more, funded by the paired Long losing the same amount.
In Continuum
Short tokens give you downside exposure without borrowing anything. Mint the pair, sell the L, keep the S. Worth knowing before you hold one for a long time: the short leg carries a volatility decay that marks its NAV down as realized volatility accrues.
Related terms
More basics terms
Join the early access list and start trading synthetics on Solana.