Lesson 1 / 4 · 7 min · take your time
Shorting is borrowing to sell
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Board 01
Shorting is borrowing to sell
A short sale is selling a share you borrowed, hoping to buy it back cheaper. If rises, your loss is not capped the way a long share’s loss is. The share can keep climbing. A long share can only fall to zero.
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A short sale is selling a share you borrowed, hoping to buy it back cheaper. If rises, your loss is not capped the way a long share’s loss is. The share can keep climbing. A long share can only fall to zero.
This desk does not let you short. That is on purpose. The lesson is easier to skip than to feel. Live shorts also pay borrow fees and can be bought in. Memes about “squeezes” are not a strategy.
If you cannot explain who you borrowed from and what happens if doubles, you are not ready to short. Watch a name on paper as a long first.
See it on the board: Tesla
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