Simple calculation:
Short 10 shares at $100 → receive $1,000
Price rises to $130
Buy back 10 shares → pay $1,300
Loss = $1,300 − $1,000 = $300
Easy rule:
Short + price goes down → you make money.
Short + price goes up → you lose money.
The higher the stock rises, the bigger your potential loss.
Important: Short selling is riskier than normal buying because a stock can theoretically rise without limit.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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