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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (8140)	4/30/2000 2:48:00 PM
From: Apakhabar	Read Replies (1) \| Respond to of 18137

Eric... thanks for directing me to the thread summary. What a great resource; I'm only sorry I didn't discover it last June when I started with direct access. FWIW regarding brec's argument: it's a matter of buying power much more than it is risk or anything else. You have 100k cash, you go short 1000sh @50, the stock goes to 60, your account is worth 90k, your buying power is 180k minus the 60k to cover = 120k. With 100k cash, you go long 1000sh @50, stock goes to 40, account is worth 90k, buying power is 180k minus 40k = 140k. But if both traders close out their positions they will end up with the same buying power, of course. My question about this: aren't some institutions allowed to buy stock with the cash received from the short sale?