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Non-Tech : Wit Capital - The way of the future?
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To: Mr. Aloha who wrote (6651)7/9/1999 11:58:00 PM
From: PAL  Read Replies (2) of 16809
 
Mary, if you never short a stock, try do a paper trade frist. Shorting a stock has an unlimited risk. For example, people who shorted AOL, YHOO etc lost a lot of money. Many of us are puzzled that in margin account you can short a stock but need a special requirement for selling naked puts which has a limited risk (although could be quite large - the most you can lose is when the stock goes to zero). Therefore, when you short a stock, some people try to limit the risk by buying call.

Best regards

Paul

Ooops, after I posted, I realized that I should have posted to Mary. Sorry.
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