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> With shorting, you can in theory have infinite loses

This risk can be hedged with futures and options.



Congratulations, you just invented the synthetic put.


> you just invented the synthetic put

Short and a call, yes. Short and a future, no. Either way, infinite losses isn’t an unavoidable downside when it comes to shorting. Stock-borrow and margin risks are.


Agreed. But it adds complexity.

Sometimes you just want simple leverage, which the puts can provide.




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