HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Theoretically, you COULD lose more by shorting a stock and seeing it rise in price than by a buying a stock and having it drop.
But that's just in the theoretical sense where a stock can only drop down to zero, so there is a floor or maximum amount that can be lost from a longed stock (which happens to be the purchase price plus commission). However, since there is no ceiling as to how high a stock can go, theoretically, you can short a stock and see it go to infinity and thus lose an infinite amount of money.
But I sense that what your confusion is about is, do you lose the same amount of money shorting a stock that rises 5 dollars as you do in buying a stock that drops 5 dollars. And the answer there is: yes. If you buy a stock at $10, and it goes down to $5, and then you sell, you have lost $5/share. If you short a stock at $10 a share and it goes up to $15, and you cover, then you have lost $5/share.
So if you short a stock and it goes up do you lose more than if you buy a stock and it goes down? Jun 14, 10:00
Theoretically, you COULD lose more by shorting a stock and seeing it rise in price than by a buying a stock and having it drop. Jun 14, 10:24
In some situations, yes Jun 14, 10:25
If you buy & it gord down $10, you lose $10/share. If you short & it goes up by $10, you lose $10 per share. The {nm} Jun 14, 13:25
This does not answer Quicksilver's question... lapuckfan has the correct answer (cost differences = comission issue) {nm} Jun 14, 13:33