I just cannot, for the life of me, understand how you make a profit by it.
In: Economics
You make an agreement with the owner of a share to buy their share at some future point and pay them a fee to stick with the agreement.
Then you find someone who wants to buy a share and you sell them the share that you have arranged to buy. You’ll get roughly the amount of money this share is currently worth for this.
Then at some future point you do have to go through and buy the share. That might be more expensive than it was when you sold it or less, but if it’s less then you’ve made a profit.
So shorts make money when shares fall in value
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