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bdone2012 t1_j77fwsm wrote

I'm not sure you were serious but from my little understanding, shorting stocks can be a bad idea. Normally when you buy a stock the theoretical worst case scenario is that it winds up worth nothing.

When you short a stock it's the opposite, meaning that theoretically it could go up indefinitely. I'm not sure exactly how the numbers work out but let's say you short Netflix and it somehow went up 10x you'd now owe a lot more money than the amount that you originally shorted them for.

So by accident you could potentially go into debt when you thought you were shorting for an amount that you could reasonably lose.

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