If I understand short-selling at it’s most superficial level, it’s the equivalent of commodity trading. You give a promissory note based on a predicted trading price and you pay out of profits made on your prediction.
This is going to hurt a lot of predatory traders. I’m not saying that I’m exactly concerned about predatory traders.
Hanging with piano wire hurts worse.
They should thank these guys.
There are two ways to do it.
You can sell short—borrowing the stock and selling it. Your losses can be infinite. AND you have to pay interest on the sale.
The second way is to sell puts. This is the promissory note route. It has a time frame on it. The value degrades every day.
When this turns, it will make the people who sold short at the top—and who held on for dear life—billions of dollars.