Understanding Short Selling Risks

What is short selling? Let me explain. Gio borrows 10 shares of Nvidia from his broker at $50 each,

totaling $500. He immediately sells those borrowed shares to Dylan for that same $500.

Dylan now owns the shares at $50 each. A week later, the stock crashes to $30.

Gio buys back 10 shares from the market for just $300 and returns them to his broker.

His profit is $200, the difference between what he sold for and what he bought back for.

But here's where it gets dangerous. If the stock had jumped to $100 instead, Gio would need $1,000

to buy back those shares. That's a $500 loss, and there's no ceiling to how high it could

climb. Dylan's position is totally different. He bought at $50, so if the stock