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I'm not really sure what you mean. If you naked short without covering with options then the price can pretty much go up forever and you cover the difference.
by mason55 11y ago
I'm not really sure what you mean. If you naked short without covering with options then the price can pretty much go up forever and you cover the difference. I don't understand where zero comes into play.
- mianos 11y agoSorry, my mistake. I was thinking the option on the back of it. Yes, you are correct, for simple stocks, if the stock price rises forever you theoretically have the possibility of infinite losses. Practically I'd not use infinite, but that has busted many people.