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Strategies & Market Trends : From the Trading Desk

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To: steve goldman who wrote (2861)4/17/1998 5:25:00 AM
From: Alf  Read Replies (2) of 4969
 
Steve
I am sure that this question has ben asked many times, but could you please explain the process for shorting a stock along with margin requirements using the following example.
$ 20,000 cash at 9:30 am
SEEK bid 44 ask 44 1/4 where I want to start
SEEK bid 41 ask 41 1/8 to cover

Do I have $ 40,0000 to use in this example ?
I assume that the first order goes in at 44 1/4 - bid
not to sure when covering if it goes at the bid or ask

Have never done this and do not want to screw anything up (other than a loss to my account)
It just seems easier to predict the top and by not using the ability to short seems like you miss out on 1/2 the action.

Thanks in advance for any help that you provide !
Tim
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