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What happens if you short sell a stock like BP? Would you lose a lot of money because the stock is likely?



An Anonymous User asked:




not to go back up?

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No Responses to “What happens if you short sell a stock like BP? Would you lose a lot of money because the stock is likely?”
  1. b2fnow says:

    stock is likely? what does that mean?

    When you sell a stock short you are betting on price going down. Price has already been beaten down badly and overdue for a bounce. You are late to the game; downside price movement is limited. Price movement to the upside is unlimited and so are your losses if you are short.

    Here is a good reference for finance terms and definitions

    http://www.investopedia.com/terms/s/shortselling.asp

    http://www.investopedia.com/terms/s/short.asp

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