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selling short is the selling of stock you do not actually own but promise to deliver. suppose you place an order to sell short 1
selling short is the selling of stock you do not actually own but promise to deliver. suppose you place an order to sell short shares of stock x at $ eventually, your order must be covered. that is you must sell shares of stock x at a value of $ per share. if when the order is covered, the value of the stock is less than $ per share, then you make money; otherwise you lose money. suppose that on the day you must cover the sell short order, the price of stock x is $ per share. how much money did you lose?
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