May 31, 2017 · When shorting a stock, the maximum gain is capped at 100 percent of the original investment, and the potential losses are unlimited. Short selling also comes with a number of costs that typical stock buying does not. Short sellers are charged stock borrowing costs that can exceed the value of the short trade if a stock is particularly difficult What does it mean to "Long" or "Short" a stock or the ... At this point, the trader has “sold short” the stock and believes the price is going to be lower. This is also known as being “Bearish” or a ‘Bear” on the market. When the price has fallen, the trader buys the stock at a lower price and “covers” his “short” position.