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[–] 5 points 9 months ago (3 children)

That's a good question I dont have an answer to. Maybe there are ways to short where you can just hold, but I dont know how. Maybe there's a way to borrow lots of RAM and GPUs, sell them, then buy them back when the price drops and sell them for cheap back to whom you borrowed. But I dont know who would make that deal.

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  • [–] 4 points 9 months ago (2 children)

    You can hold a short position by repeatedly borrowing more stock -- but you run the risk of running out of money completely, because short positions have (theoretically) infinite downside risk.

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  • [–] 1 point 9 months ago (1 child)

    Financial risks can, by themselves, never be infinite. They are by nature quite finite. Also, risks are always alluding to a downside. Otherwise they're called chances.

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  • [–] 1 point 9 months ago

    Granted. "Arbitrarily large" would probably be a better phrasing: if I buy a stock for $100 and the value drops to $0, I'm out $100. Can't lose more money than I put in. What I meant is that short positions, by their nature, don't have this ceiling on the amount of money you lose.

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