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Short Selling | Canadian Investing
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In this episode, we dissect short selling: borrowing shares, selling them, and hoping to buy back cheaper. It sounds like buying in reverse, but the risk profile is brutally asymmetric — your gain is capped at 100% while your loss has no ceiling, and a short squeeze can force you to cover at the worst moment.
Key takeaways:
- Shorting inverts the risk of owning: limited upside, unlimited downside
- Borrowed shares must be returned — timing is not optional
- Short squeezes turn crowded…
The skinny
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