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To: ztect who wrote (806)	2/9/1999 2:56:00 PM
From: Rajiv	Read Replies (1) of 1329

Re : Boxing... Let us take XYZ for example.. If you are short 1000 shares and XYZ is 110 - an average retail investor needs to put up 50% for the short position (the maintenance requirements is around 30%). If you box this position. You are long 1000 shares of XYZ and short 1000 shares of XYZ. If you do this in the same account, the margin requirements can be as low as 5% of the amount involved (maintaining a boxed position requires less capital than a pure long or pure short positions). By being boxed, you are market neutral - you do not lose/make any more money (irrespective of the stock price movement) Advantages - - To attempt to increase your basis by a few points by unboxing at a higher level - You do not have to worry about being able to borrow the shares later as you are already short. - Lower margin maintenance requirements If you check the AMZN thread, there are a bunch of people who box their position frequently. Regards. Rajiv -

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