DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: brec who wrote (8117)	4/29/2000 8:00:00 PM
From: atto	Read Replies (1) of 18137

I'm afraid your summary is not correct, but I'm currently at a loss (excuse the expression!) as to how to restate my point differently. Let's pick an extreme example to make this more obvious. You and I both have $10,000. You sell short $10,000 worth of stock ABCD, I buy $10,000 worth of stock EFGH. An hour later ABCD is worth twice what it was worth before, while EFGH is now worth $0. We both lost the entire $10,000, however my risk is now 0, while you are still holding a short position that is now worth (price per share x number of shares you sold short) $20,000. Obviously my risk decreased while your risk increased. atto

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