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lakerslive 03-29-2020 06:05 PM

First time Short selling
 
Hey guys, i just cant wrap my mind around this but

if i started short selling a xyz from $1 to $.90 @1000 shares, that would make me $100

So the real question is

what if i short from $1 to .0001 @1000 shares, what would make me?

Because once it dips below .01 to like .009 the 1000.. then the harder it will be to make money? i cant seem to grasp this.

Goethe 03-29-2020 06:19 PM

If a share that is currently trading at a dollar goes to a fraction of a penny, I'm guessing there wouldn't be much left to short. Using your maths, if the share drops to a penny you'd make $999 right? Don't sweat the small stuff :1orglaugh

I short stocks but as a hedge. Any share I buy takes a plunge the minute I click the buy button for some reason, so I place a 50% short as a hedge.


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