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Strategies & Market Trends : ARBITRAGE FOR THE SMALL INVESTOR

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To: T Roberts who wrote (5)11/29/1997 11:18:00 PM
From: TimbaBear  Read Replies (1) of 34
 
Thank you for your response......however, I'm pretty new to all of this and have never sold anything short.....so I don't understand " simply sell short the number of shares you'll receive"....if I don't have the shares yet, then am I doing a something in a margin account?....I have purchased some call options in the past, when I sell short, do I have to know a time frame? In other words, is there a time pressure that I could lose money on if the deal doesn't go through on time?

I know I am very ignorant in these matters, but I am bright and can learn pretty quickly ( although as I get older I am less certain about that quicker part!!). If you will be so kind as to walk me through this, I would appreciate it. I have gotten pretty good at doing the research on stocks, just want to learn how to maximize my returns and I think this will be another tool in the pouch.

Thanks again for your time

Tim
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