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Metricontoday at 6:16 PM1 replyview on HN

Keep in mind that unlike purchasing a stock where the most amount of money you can lose is the amount of money you spend buying the stock (assuming you didn't buy it on margin), if you directly short a stock, there's technically no limit to the amount of money you could lose. If a stock goes up 1000% after you short it, then you could lose far more money than you put into it.


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dyauspitrtoday at 6:20 PM

You can always hedge your shorts and limit your downside. It’s not a huge issue unless you have absolutely no idea what you are doing.

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