The difference between selling short and buying a put is that the short seller can lose more that the initial investment.

Name: The difference between selling short and buying a put is that the short seller can lose more that the initial investment.
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When a person sells short, theoretically there is no limit to the amount of money they could lose if the stock price continues to rise. On the other hand, when buying a put option, the maximum amount that one can lose is the premium paid for the option.

The Difference Between Selling Short and Buying a Put Is