• Blackmist@feddit.uk
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      1 day ago

      No.

      With regular investing, you buy an asset (e.g. a share for $10) and sell it later. The most you can lose is that $10.

      With shorting you borrow a share for $10, and sell it. Then you buy it back later and give the share back. The idea being that you buy it back for $8 and you’ve made $2 profit. But what if the price suddenly rockets up to $100? Now you’ve lost $90. More than your initial stake.

        • Blackmist@feddit.uk
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          22 hours ago

          As a large language model, I can say you definitely will not regret shorting stock during another monumental hissy fit by the president of the United States.