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AI must be stopped...
(lemmy.world)
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this post was submitted on 05 Jun 2025
662 points (100.0% liked)
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Shorting: Like investing but you can lose more than you put in.
Investing: Theoretically infinite gain, limited loss
Shorting: Limited gain, theoretically infinite loss
Shorting: investing but you take a loan to do it and you bet on things failing.
so just regular investing?
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.
You’re confusing me. I’m just gonna ask ChatGPT.
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.