So how does that work then? I don’t know anything about shorting a stock 🤷🏻♂️ how much does it have to drop for him to profit from his position? and if it starts pumping how soon does he become rekt?
Discussion
There's 2 scenarios
1- open trade with no stop loss or take profit....if mstr tanks he can cash in at his leisure
If It rallies, as soon as his account can't cover the loss, margin call is triggered and he's rekt
2- open trade with sl & to.....if mstr tanks, his tp triggered and trade closed in profit
If it rallies sl triggered and loses the set amount.
Apologies in advance if you already knew this and was asking something different