I just cannot, for the life of me, understand how you make a profit by it.
In: Economics
Short selling is like borrowing your friend’s toy to sell it to someone else because you think the toy will become cheaper soon. Later, when the price drops, you buy the toy back for less money, return it to your friend, and keep the difference as your profit. But if the toy’s price goes up, you’ll have to buy it back for more, and you could lose money.
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