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by hsjqllzlfkf 1051 days ago
The losses are not unlimited, you're just parroting something you heard somewhere.
1 comments

How is that not the case? Your worse out come buying a product is it goes to 0 which is a defined loss. Shorting it 0 is your best outcome which has a fixed upper bound. The asset going up has no upper bound.
The asset going up has no upper bound, but your losses do, and it's 100%. When your losses get to 100% your broker closes your position and sets your balance to $0.