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Prudent Capitalist

02/28/23 4:08 PM

#118725 RE: Stockman1010101 #118723

Bingo! They don't, and as long as the share price declines shorts pocket profits.

Why do shorts need money to short a stock? I thought when they short a stock they get paid up front for selling it and the up front money they get can be used to pay any shorting fees. So why would a shorter need additional money for a given real/naked short position?