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TopicPolitics Containment Topic 110: Cleveland Steamer
kevwaffles
07/06/17 8:59:36 PM
#49:


Wanglicious posted...
anybody who's been shorting stocks has gone bankrupt.
i mean somebody will win that eventually once the bubble pops.

but this bubble is near impossible to predict.

It doesn't take a company full on collapsing to make money on a short sale, despite that always being the context in fiction.

A short sale is essentially a short term loan equivalent to the amount you would make from the sale of stock in a company if you had it. Like a loan and unlike a normal stock, you have to pay interest on it. You just need it to drop enough in the limited time you have it to cover that interest to make some money of off it.

I mean it's a gamble for sure (as is the market in general) but it doesn't take a full bubble collapse for a particular company to temporarily lose value. For example, if you had shorted Tesla this week you'd have made money, but Tesla isn't going to fold anytime soon.
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