why short sale has unlimited downside liability? thanks.
because the underlying asset can only decrease to 0 (this is a limit for the loss of long sale), however the price can go up forever (there’s no limit for a short sale loss)
why short sale has unlimited downside liability? thanks.
because the underlying asset can only decrease to 0 (this is a limit for the loss of long sale), however the price can go up forever (there’s no limit for a short sale loss)