/biz/ - Business & Finance

[Anonymous No.51452105]

What does it mean to short something.
I watched the big short but still going kt get it.

[Anonymous No.51452122]

I would never settle with a 36-40 year old. 25 year old or nothing. I'd rather stay single.

[Anonymous No.51452125]

>What does it mean to short something.
>I watched the big short but still going kt get it.
Lurk more newfag or google it yourself.

[Anonymous No.51452129]

Begone jew

[Anonymous No.51452181]

>>51452105
essentially you take out a loan denominated in the asset you're going to short
so for (simplified) example you borrow 1 bitcoin and say I will pay you back 1.05 bitcoins in a week
then you immediately sell that bitcoin at $20,000, predicting that the price will drop
the price drops 50% so you buy 1.05 bitcoins at $10500 and then repay the loan
you keep the remaining $9,500

[Anonymous No.51452243]

>>51452105

[Anonymous No.51452291]

>>51452181
>>51452243
Fucking kek

[Anonymous No.51452321]

>>51452181
the way this happens on an exchange is with leveraged collateral, so there is 0 risk of default for the exchange
you put up $2000 as collateral and use it to borrow 1 btc at $20k (10x leverage), which you sell to short
if the price rises enough that your collateral isn't enough to cover the difference between your entry price and the current price ($22000), your position gets closed (they automatically use the $22k in your margin account to buy btc) and you lose your collateral.

[Anonymous No.51452725]

>>51452243
that makes sense