How long can you theoretically hold a short position for?
I mean, if it just keeps going higher and higher can I theoretically hold the stock forever and never cover?
Answers
121 points
eqwittydotcom answered 8 months ago …
Theoretically, you could short the stock "forever". There is no pre-determined time limit for shorting a stock. However, you could technically be "forced" to cover at any time if those shares that you borrowed are no longer being held by the lender. That typically doesn't happen though as your broker is doing the "brokering" of the deal and probably has more shares available than you can short.
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265 points
fuzball answered 8 months ago …
Why would you want to? Isn't the object of investing to make a decent profit? Nothing you invest in will go up "forever" thereby adding the risk of a sudden crash of your investment by some bad news you aren't privy to. Why take that risk? Set a decent profit goal, acheive it, collect and move on.
One of the great investors of all time, and an adviser to several Presidents was Bernard Baruch,who answered this question from an interviewer, " Mr Baruch, to what do you attribute your great success in the stock market?"
He answered, "By selling too soon."
I hope you get the drift. His answer should be carved in rock.
