So like going to a car lot, selling their car to them for $50,000 and then taking it and driving it for a couple of years then go and return it, but actually buy it at that time for $10,000?
So you've made $40,000 profit for getting to drive a car?
But if somehow the car value went up to $100,000 when you returned it, you would have to them buy it for that $100,000 when you returned it and have a loss of $50,000?
So short selling is selling it before you buy it?
So like going to a car lot, selling their car to them for $50,000 and then taking it and driving it for a couple of years then go and return it, but actually buy it at that time for $10,000?
So you've made $40,000 profit for getting to drive a car?
But if somehow the car value went up to $100,000 when you returned it, you would have to them buy it for that $100,000 when you returned it and have a loss of $50,000?
Am I understanding short selling correctly?
Yep.