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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (8415)9/27/2002 4:00:29 AM
From: eddieww  Read Replies (2) | Respond to of 30712
 
The point of my question:

For short-term traders it may not matter much, but you pay interest to the broker for the loan of shares for shorting. If you use a "boxing" strategy as described, where you basically always have a short position open, the margin interest can become a non-trivial cost that you wouldn't pay if you simply went flat rather than "box".