DeacsATS
Sam "Ace" Rothstein
OK that makes sense. This is what I was intending to say when I said there are time limits.
If the stock isn't particularly volatile, you could have a short position for a long time (months). Borrowing costs generally keep you from holding a short for too too long, but that varies greatly depending on what you are shorting (short interest, volatility, etc).
For the record, there is nothing immoral about shorting stocks. It is costly to do so and you are taking a lot of risk. But if you think a company is a fraud or incredibly overvalued, I think you're actually doing something positive. Why do people celebrate the guys from "The Big Short"? What is different about what they did?