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.
replyDoes market closing and not trading continuously affects this?
replyIf market opens at significantly different price, you may be forced to liquidate and loose more than expected.
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.
replyIt seems like a prudent warning in a thread explaining the very basics of short selling
replyAlso 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
Spoken like someone who's never actually done it. Hedging to limit max loss is extremely expensive.
replyI have done it before. How is it expensive, most brokers offer commission free trades now. It’s just another long order.
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