I just cannot, for the life of me, understand how you make a profit by it.
In: Economics
You borrow stocks from someone. You immediately sell the stocks for personal gain.
Every X days, you pay them money to borrow their stocks.
Whenever you decide to close out your position, aka the stock price has dropped enough, you rebuy at a lower price and give the stocks back to the person you borrowed from.
You pocket the difference.
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