Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: margin_man who wrote (47310)	12/5/1999 1:10:00 PM
From: Tatnic	Read Replies (1) of 122089

The theoretical maximum gain one can get on shorting a stock (no puts) is 200%. The math is as follows: say you want to short a stock thats trading around $10/share. You need to put up at least $5/share margin. Lets say it goes to zero. You made $10 for the $5 initial investment, which is 200%. Its true as the stock drops you need less margin, but for sake of clarity the 200% is the max. Not aware of any broker that allows more margin than that either.

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