Can you please truly explain like I’m five? Like with bubblegum or cookies as an example? Because I have tried understanding how this works several times and I just do not get it.
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You think that bubblegum will cost less tomorrow, so you borrow some today and sell it at todays prices with the intent of buying some more tomorrow at a lower price to return what you borrowed.
There are often fees involved, meaning that you agree to pay a small amount to the person you borrowed it from. And it can be quite risky as if the price goes up tomorrow rather than down, you still have to buy new bubblegum and return it to the person you borrowed it from.
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