For a short-seller, a move from $5 to $2.50 is not a double. It’s a 50% gain.
Jim or PS, could you explain that logic? I don’t really know what short selling is and I am trying to understand why that is only a 50% gain.
In my mind, an example of selling short would be selling 100 shares at $5, taking in $500. You later buy those 100 shares at $2.50, paying $250. Haven’t you just doubled your $250 to $500?
What am I not understanding, or is it too complicated to explain in a forum like this? Don’t worry, I’m not about to try this, I’m just trying to understand 🙂