You short-sell 10 shares at USD 100, receiving USD 1,000. When the price rises to USD 130, buying back those 10 shares costs USD 1,300.
Loss = USD 1,000 − USD 1,300 = −USD 300.
Borrowing the shares does not protect you from losses. A short seller profits when the share price falls and loses when it rises. This also highlights the key risk of short selling: the potential loss is theoretically unlimited because a stock price has no fixed upper limit.
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