The Difference Between Shorting ETFs and Inverse ETFs (and Which Is More Risky)
However, there is a potential for unlimited losses if the share price rises instead of falling. Pros: Allows traders to profit from declining prices in a specific ETF or market segment. Provides flexibility in timing and duration of the short position. Cons: Requires paying borrowing fees and interest on the short position. Exposes traders to the risk of potentially unlimited losses if the share price rises. Involves the risk of being forced to cover the short position prematurely (short squeeze)....