In the short position how can a potential investor maximizes his returns



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In the short position how can a potential investor maximizes his returns

2 Answer(s)


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The main goal of allocating your assets is to minimize risk given a certain expected level of return. Of course to maximize return and minimize risk, you need to know the risk-return characteristics of the various asset classes.

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in short position the investor is not trading his own assets but of borrowed assets so his aim here is to make a profit at its best so what he actually does is buy low and sell high in a way he is getting a profit but he cannot retain the assets so he has to sell it back from whom he bought. so here there is no chance of maximising the returns.