GREY:CRIUF - Post by User
Comment by
Sadie222on Jul 22, 2018 4:11pm
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Post# 28350566
RE:How does short selling make money
RE:How does short selling make moneynovascotian2014 wrote: Short selling is a fairly simple concept: you borrow a stock, sell the stock and then buy the stock back to return it to the lender. Short sellers make money by betting that the stock they sell will drop in price. If the stock drops, the short seller buys it back at a lower price and returns it to the lender.
Don’t forget the flip side. If the stock increases, he still has to buy replacements to return to the lender, and that cost has no top limit. A really bad short can bankrupt you.