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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: margin_man who wrote (47310)	12/5/1999 11:58:00 AM
From: Anthony@Pacific	Respond to of 122089

I understand the margin reuirement on 1,000 shares at 50 is only 15 bucks, and your return, is actually 300% on your capital comntribution,,I was just trying to make the explanation Dummy proof. Cheers A@P

To: margin_man who wrote (47310)	12/5/1999 1:10:00 PM
From: Tatnic	Read Replies (1) \| Respond to of 122089

The theoretical maximum gain one can get on shorting a stock (no puts) is 200%. The math is as follows: say you want to short a stock thats trading around $10/share. You need to put up at least $5/share margin. Lets say it goes to zero. You made $10 for the $5 initial investment, which is 200%. Its true as the stock drops you need less margin, but for sake of clarity the 200% is the max. Not aware of any broker that allows more margin than that either.