2023-09-12 07:16:30
Not true. The cost to short sell is primarily the cost to borrow the shares you don’t own. If the stock goes from 100 to 0 and the borrow cost (+ sale fees are) 5, the return for the short seller is 20x. Not 1x. NEEDS_MORE_RATINGS(0-0-1) Author
2023-09-12 09:58:15
You cannot gain more than the value of the shares when the stock was shorted. Tweet is factually correct. The “Cost to borrow” in order to short said stock, only diminishes the potential returns when shorting. [Link] NEEDS_MORE_RATINGS(0-0-0) Author