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What are the risks of short selling?, page-3

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Golden Fleece

3,518 Posts.

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19/08/22

11:49

Post #: 63209701
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Originally posted by Rivera437: ↑

When an investor sells short, they are exposed to unlimited risk. This is because the price of the security can continue to go up indefinitely. An investor needs to have a plan for how they will cover the cost of purchasing the security if the price does continue to rise.

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Originally posted by MichelleHall: ↑

A short position occurs when an investor sells an asset that they do not own and hopes to repurchase the identical security at a lower price in order to profit. While there is no way to predict when is the optimum moment to sell short, being aware of these criteria can help an investor make a more educated decision.

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Sums up your short selling posts
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