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Shorting OIA, or really any big company, is like trying to stop a train which is on fire by standing in front of it. Yes, it is on fire and won't last long, but
by Yizahi 9mo ago
Shorting OIA, or really any big company, is like trying to stop a train which is on fire by standing in front of it. Yes, it is on fire and won't last long, but it will still crush any small player trying to overpower whole corrupt system.
- fauigerzigerk 9mo agoYou don't need to stand in front of a train to bet on a trainwreck.
- piva00 9mo agoBut that isn't the analogy, is it? Betting on the trainwreck is quite easy, you got nothing to lose in the analogy, while shorting companies will cost you something, most times a lot if the bet has the wrong timing.
- fauigerzigerk 9mo agoBetting usually has a cost.
- piva00 9mo agoA fixed one, not one that can suffer snowballing increase in case your bet is wrong.
- fauigerzigerk 9mo agoNot necessarily. Spread betting doesn't work like that for instance. And shorting a stock can be structured in a way that caps your losses as well. It's just a matter of cost vs potential gains.