4 ms·
What is the opposite of buying a specific stock? Buying every single other stock?
by JamesSwift 10y ago
What is the opposite of buying a specific stock? Buying every single other stock?
- loteck 10y agoIn investing, my understanding is the opposite of a long is a short.
- wstrange 10y agoShorting has asymmetric risk. When you are long your loss is 100%. With a short it is theoretically unlimited.
- dragonwriter 10y ago> Shorting has asymmetric risk. Shorting is perfectly symmetric with longing (except linguistically -- because "shorting" is perfectly normal, but "longing" not): in the former you have unlimited downside risk and limited upside set by the price at which you sold, in the latter you have unlimited upside potential and limited downside set by the price at which you bought.
- jboles 10y agoIsn't this the situation that a margin call is meant to handle -- limiting your losses to the collateral you have on deposit?
- Nicholas_C 10y agoShort selling a stock.
- qznc 10y agoThe opposite is to borrow and then sell it.
- ceejayoz 10y agoThat has a lot more risk. https://en.wikipedia.org/wiki/Short_squeeze https://en.wikipedia.org/wiki/Short_squeeze