> Shorting is also used for hedging & downside risk
Please explain. Shorting is when you DO NOT have shares. You borrow them to sell. So, how is that "hedging & downside risk" when you have no exposure to the company to start with? When you have shares, you don't short. You only sell your own shares.
The only case where this technically makes any sense is when you play options and you sell deep in the money puts which give you heavy exposure to the long side. You vritaully won the shares as you know 100% that the options will be assigned and you must buy the shares in the near future. You may short some physical shares to counter balance when the share price is at risk of falling sharply. But options is not something easy to play and easy to sell at high volume because people don't play options very much, so you don't end up shorting millions of shares.
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