Short selling - maximum possible loss?

[Donut Tim]

Yes, you are correct.
There is no cap on the possible loss when selling short.
(However, "infinite" may not be the best word here.)

When you short sell a stock, your broker will lend the shares to you. The shares are sold for you and the proceeds are credited to your account.

But you have only "borrowed" the shares and then sold them. Sooner or later, you must close the short by buying back the same number of shares and returning them to your broker. If the price drops, you can buy back the stock at the now lower price and make a profit on the difference. If the price of the stock rises, you must buy it back at the higher price, and you lose money. There is no specific limit to how high the price may go or how much you can lose.
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