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Day Trading MCQs

Why is short selling risky?

Because if the price of the security rises endlessly, there is no limit on the losses that can be incurred

Because the brokers can mandate the seller cover their position at any point

Because there are no laws protecting short sellers

Because inexperienced short sellers can create havoc in the market

Answer

Correct Answer: Because if the price of the security rises endlessly, there is no limit on the losses that can be incurred

Explanation:

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