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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (8017)	4/21/2005 6:45:57 AM
From: Walkingshadow	Read Replies (2) \| Respond to of 8752

Totally different from options. Completely, totally different. Options involve leverage, and so risk and reward are both magnified. But for a stock trade, there is no leverage involved. When you take a short position, there is no leverage, just like when you take a long position. There really is no difference in the two, only the direction and the fact that the transactions proceed backwards to one another (sell, then buy for a short; buy, then sell for a long). There is NO leverage in either a short position or a long position in a stock. T