General question about the market
So I still have a lot to learn as far as the nuts and bolts behind the market so this is me investigating that
So if one goes for a short position, they borrow (for example) 10 shares at 100 dollars from a broker, sell them to make 1000, and then when the price drops biy back the 10 shares at a lower price.
I know this would never be the case because everyone would do it, but why not just sell the shares to begin with and not even worry about buying them back?
Is it because when you borrow the shares in the beginning of the trade, your not borrowing money, your borrowing shares, and so when you buy them back you fulfill your debt to the broker by giving them the shares, but you acquired them at a lower price so therefore you win?
Sorry im just kinda confused and trying to figure out how it all works
Thanks
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Jimmy Kreutzer
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General question about the market
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