the.com/short selling
betting a stock will fall by selling shares you don't even own yet.
means borrowing shares, selling them now, and hoping to buy them back cheaper later to return them, pocketing the difference.
from traders have bet against prices since 17th-century amsterdam, but the term crystallized on wall street when jesse livermore made shorting infamous during the 1929 crash.
max gaincapped at 100 percent, if stock hits zero
max losstheoretically infinite, stock can rise forever
squeeze riskgamestop 2021 forced shorts to buy back, panicking
borrow costyou pay interest on the shares you borrowed