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Re: Eli's Gone post# 227554

Monday, 05/20/2013 9:58:55 AM

Monday, May 20, 2013 9:58:55 AM

Post# of 312025
You are exactly correct. If a short goes with you, the max. gain is 100%. If it goes against you, the potential loss is infinity.


If you short a stock at $1 and it goes to 0, you make $1 per share, or you gain 100%. If you short it at $100 and it goes to 0, you make $100 per share, or 100%.

If you short it at $1 and it goes to $1,000,000, you lose $999,999 per share. You figure that!

If you short, your max gain is the price that your shorted it at.

But, repeating myself, the potential loss is infinity.

So there!