It’s not totally clear to me of what this is or how this works. And how to profit in the markets.
In: Economics
You borrow stock instead of borrowing money. So if you think the stock is going to go down, you could borrow 100 shares at $100 apiece . . . then sell them right away and get $10,000. Once the stock goes down, you could buy 100 shares at, say, $50 apiece, then repay your stock loan. You have made $5,000.
If you bet wrong, and the stock goes up, you lose money. If you sell at $100, you get $10,000. But if the stock goes up to $150, you have to buy 100 shares at $150 to pay back your stock loan, and you will lose $5,000.
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