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Why they watch the price to go up for short sale opportunity instead of just buying at the lower price?
by zhoutong 15y ago
Why they watch the price to go up for short sale opportunity instead of just buying at the lower price?
- somebear 15y agoBecause the profit comes over a shorter period, i.e. shorting stock from the 3rd to the 5th. If they just bought at the lower price after the announcement they would have to wait for a longer period before they would gain the same profit as through shorting the stock.