You can always hedge your shorts and limit your downside. It’s not a huge issue unless you have absolutely no idea what you are doing.

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vl 2 hours ago | parent | next [-]

Does market closing and not trading continuously affects this?

If market opens at significantly different price, you may be forced to liquidate and loose more than expected.

	▲	dyauspitr 42 minutes ago \| parent [-]
		Hopefully you have a limit order in place. You can also do more complicated hedges with options which might cost a little bit more depending on the spread but you can guarantee your hedges.

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anonymars 2 hours ago | parent | prev | next [-]

It seems like a prudent warning in a thread explaining the very basics of short selling

Also worth mentioning you might be on the hook to buy it back at any time; after all, the person you borrowed it from may themselves wish to sell it. If widespread, this is the basis of "short squeezes" (e.g. of GameStop fame/infamy), if a lot of short sellers are trying to buy it back at the same time

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inigyou 2 hours ago | parent | prev [-]

Spoken like someone who's never actually done it. Hedging to limit max loss is extremely expensive.

	▲	dyauspitr 2 hours ago \| parent [-]
		I have done it before. How is it expensive, most brokers offer commission free trades now. It’s just another long order.