diff --git a/CHANGELOG.md b/CHANGELOG.md
index b749df6c4..1d6a1779a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Features
 
 ### Fixes
+- sdk: fix bug which incorrectly calculated leverage after trade for a market with no position but short orders open
 
 ### Breaking
 
diff --git a/sdk/src/user.ts b/sdk/src/user.ts
index 05db9ca11..acfa0a007 100644
--- a/sdk/src/user.ts
+++ b/sdk/src/user.ts
@@ -2884,8 +2884,12 @@ export class User {
 			includeOpenOrders
 		);
 
+		const worstCaseBase = calculateWorstCaseBaseAssetAmount(currentPosition);
+
+		// current side is short if position base asset amount is negative OR there is no position open but open orders are short
 		const currentSide =
-			currentPosition && currentPosition.baseAssetAmount.isNeg()
+			currentPosition.baseAssetAmount.isNeg() ||
+			(currentPosition.baseAssetAmount.eq(ZERO) && worstCaseBase.isNeg())
 				? PositionDirection.SHORT
 				: PositionDirection.LONG;