What happens if i sell short a stock and it goes to zero?

what happens if i sell short a stock and it goes to zero?

Infinite mone.

you win a million dollars and take over all company assets

Unfortunately, when you short, the most you can gain back is double

Don't you just double your money ?

What are you talking about?

why double? why not triple or quadruple? where is that rule written?

that's not true at all.

>what is leverage

An asset can only decrease by its value which represents 100%, so your gain can't be higher than these 100% which means you double your money.

In theory, he's right. What's the most a stock can fall? 100%.

WENGER OUT

>how to math

but with 5:1 leverage that would be quintupling your money, dumbass

It depends on the amount of share you shorted. With an account of 1000 usd, you can short 1000 share at 1$, but as soon as the share goes to 1.1$ you get liquidated. If you short 500 shares at 1$, the share can go to 2$ before you get liquidated, but you will only win 500$ if it goes to 0.

leverage shorting on crypto

>people dont understand thsi

Just got here off the news that BTC is crashing to laugh at faggots. How do you idiots not undesrtatnd this? Jesus christ.

actually hes right faggot, if you sell 1 at 1, you rebought at 0.01 but cant only give 1 so you made 0.99.

You borrow money which makes you the same amount of gains...

100% of your borrowed money would be 500% of your initial investment, dumbass

why do people just make shit up?

>own no XYZ stock
>sell 10 shares of it short
>goes to zero
>buy back at zero to cover shorts

profit: 10x the original price of XYZ

Two sides of the same coin, idiot.

I don't know faggot. If I have a put option to put some Tesla on your portfolio at 360, and I paid 2000 for it, and Tesla goes to 0, you give me 36000 less the 2000 I paid for the option.

Short a stock at $10, cover over at $0.10 is the same as buy at $0.10 and it moons to $10 and you sell.

Double $0.10 is $0.20. The right answer here is 9900%.

>Math is hard

you get arrested for insider trading
retail investors are not allowed to (((win)))

stocks can't go to 0 unless they get delisted

see: espers on yobit

>how to percentages
if i sell 1btc at 1000$, and rebuy at 100$ i made 10btc