Chapter 05 · Section 5.1

Short Stock Position

Short Stock Position: Stock Sold at 100

A short spot position implies:

• a) Unlimited loss potential from increasing prices.
  Yes. As there is no limit to how much prices can increase, there is no limit to the price that may have to be paid to buy the asset in order to cover the short position. Continue
  b) Limited loss potential from increasing prices.

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