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> Any of our HN readers playing around with shorting the stock of public companies as an individual investor? This seems really risky without any institutional
by AlexandrB 5y ago
> Any of our HN readers playing around with shorting the stock of public companies as an individual investor?
This seems really risky without any institutional backing. If the market is volatile or "irrational" (WSB + GME for example), you can be margin called and lose a lot of money even if you're eventually right. Unlike a normal equity you can't just hold your short through volatility.
- gregwebs 5y agoYou can buy a long-term short with cash rather than margin. You can hold onto such an option until it expires. Options have a reputation for risk, but this mostly seems to come back to using margin.