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Day Trading MCQs

What is the primary risk with short selling?

Other brokers see your transactions and try to profit as well.

The stock price never goes down, and the broker calls on the trader to pay for the security.

It is illegal.

Taxes on short sale transactions are higher.

Answer

Correct Answer: The stock price never goes down, and the broker calls on the trader to pay for the security.

Explanation:

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