It’s never really “infinite” in practice. What it really means is that the amount you can lose isn’t bound by the money you put into the trade. If you buy a stock normally, you can only lose up to the amount of money you used to buy it. With shorting, you can lose 5x, 10x, 20x the amount of money if things go wrong for you.
Correct me of im wrong. But cant you lose an infinite amount if the stock rockets up and the share owners comes asking their shares back?..
Yes you can
Well, if it went up an infinite amount, then yes. In reality, that’s pretty unlikely
It’s never really “infinite” in practice. What it really means is that the amount you can lose isn’t bound by the money you put into the trade. If you buy a stock normally, you can only lose up to the amount of money you used to buy it. With shorting, you can lose 5x, 10x, 20x the amount of money if things go wrong for you.