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Wednesday, April 08, 2020 6:36:22 PM
But surely as the stock goes up the short is losing more and More money. Surely he has to show he is good for the money in case the stock keeps going up right ?
Say he shorts 100k worth of stock. In order to short 100k he would have to give some sort of deposit for that no ? Would he have to give 100k deposit to short 100k of stock or could he get away with less ?
And then eventually if the stock keeps going up he would either have to get out and lose X or keep giving more and more deposits in hopes the stock will tank?
Is my guess correct ?
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