标题: downside risk of short sale [打印本页] 作者: dandman 时间: 2011-7-13 13:44 标题: downside risk of short sale
why short sale has unlimited downside liability? thanks.作者: jarobi04 时间: 2011-7-13 13:44
because the underlying asset can only decrease to 0 (this is a limit for the loss of long sale), however the price can go up forever (there's no limit for a short sale loss)