Financial risks can, by themselves, never be infinite. They are by nature quite finite. Also, risks are always alluding to a downside. Otherwise they’re called chances.
Granted. “Arbitrarily large” would probably be a better phrasing: if I buy a stock for $100 and the value drops to $0, I’m out $100. Can’t lose more money than I put in. What I meant is that short positions, by their nature, don’t have this ceiling on the amount of money you lose.
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Financial risks can, by themselves, never be infinite. They are by nature quite finite. Also, risks are always alluding to a downside. Otherwise they’re called chances.
Granted. “Arbitrarily large” would probably be a better phrasing: if I buy a stock for $100 and the value drops to $0, I’m out $100. Can’t lose more money than I put in. What I meant is that short positions, by their nature, don’t have this ceiling on the amount of money you lose.