the shorted stonks are finally going down but Fidelity apparently refused to collude now shitposters are buying more stonks despite the trend
what a strange world where anons buy stonks and banks burn
they are talking about if they hold the value above 200$ another couple days, another bank is going to collapse?
🇳🇱
@icedquinn It makes no sense to me, shorting makes stock prices go down not up normally. so I have to wonder why the reverse is happening here.
@freemo @icedquinn The problem is that they have to buy the stocks to exit their position (since the idea behind shorting is that they sold stocks they don't have, that would normally increase the supply and decrease the price.)
Because they shorted more shares then actually exist they have to buy them back up at crazy high prices or hold their position open.
Yea but waiting it out doesnt sound like a big issue, they can just wait it out and make even more of a fortune..
If everyone is buying to inflate the price so they cant exit their short position the logical thing to do is **not** to exit their short position but rather buy **more** short positions.. eventually people will run out of interest, time, or money and stop buying and the artificial inflation will drop back down.. Everyone who bought would have lost a ton, and everyone who held their shorts (and especially those who entered into even more shorts) would have made an absolute fortune..
So no need to artificially block teh markets at all, the "tactic" used by others to buy stocks would only help(significantly so) those who were shorting in the long run.
@freemo @icedquinn It works like a high interest rate loan though.
So yes in theory you could hold a short position forever but in practice there's the time value of money and you want to close it quickly. This is why shorting usually requires pretty precise timing and most people don't recommend taking a bearish position that way.
Not at all.. I usually have 100K + in shorts all the time. There is interest on it, but its actually very low, not super high like you suggest at all. a few percentage points in a whole year at most.
@freemo @icedquinn Hmm, maybe you're right. I don't short sell ever because it freaks me out so you probably know better than me.
Short selling is the best way to make sure you minimize drawdown on any strategy. Its important not to avoid it.
If you are scared of shortselling then buy up leveraged short ETFs, its technically a long buy for you but effectively the same as a short, the shorting is just handled by the security and not by you.
