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To: JoF who wrote (1441)7/13/1999 8:33:00 PM
From: Tai Jin  Read Replies (1) | Respond to of 2514
 
You need a broker that allows you to have both long and short positions in the same stock, or you can have your shorts at one broker and your longs at another. When you box your position, you lock in whatever gain (or loss) you have at the moment and have an effectively neutral position. From that point on changes in price do not affect your equity until you unbox (selling your long shares or covering your short).

You can also write put options against your short positions.

...tai



To: JoF who wrote (1441)7/13/1999 10:24:00 PM
From: No Scoop  Read Replies (1) | Respond to of 2514
 
Boxing also has the advantage of allowing you to effect short on a downtick by dumping your long position when the stock starts to tank. This is useful for catching downward movements in stocks that have a tendency of dropping several points in a matter of moments before the first uptick. You can remain neutral till the very last moment.