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[–] 0 points 1 year ago (3 children)
  • [–] 2 points 1 year ago (2 children)

    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.

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