Post
Topic
Board Trading Discussion
Re: Making a x10 or x100 by short selling
by
Wind_FURY
on 27/06/2023, 15:09:52 UTC
It's laughable that no one considered that the most you can profit from short selling is 1x of the amount you used for short selling.

To illustrate, if the trader has $1,000 in his account and wanted to use 10x leverage - $10,000 - to short something priced at $100, then the highest amount the trader could take profit is $10,000 IF the coin crashed to zero. The only reason why there's a potential to profit 10x of the original capital is because of leverage, NOT because there's an exponential return.