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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Shoe who wrote (28)7/29/1997 10:32:00 AM
From: Q.   of 172
 
Shoe, when you box and then later un-do your box, you do two more transactions on the open market, a buy and a sell, which means two more commissions plus spreads.

Moreover, I think that when you box you may be subject to the uptick (or for nasdaq a non-downtick) rule, on at least one side of the trade, so you may find it harder to shave the spread. I'm not an expert on this, though. You would do best by asking the head of the margin dept. at your broker.
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