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To: FJB who wrote (9868)8/18/2010 5:35:54 PM
From: Taro  Read Replies (1) | Respond to of 20435
 
Medium and long term, still the same?



To: FJB who wrote (9868)8/18/2010 6:55:05 PM
From: Sr K  Read Replies (1) | Respond to of 20435
 
>> If I make 30% on a short or 30% on a long, that is the same thing. <<

Let's get some comments on these issues for shorts:

1. To short a stock, it must be available to short. In our POTQ game, we don't and can't check that the stock is available to short.

So we open a big door for unfair competition. With a limit of 1 we haven't had any shorting abuse, that we are aware of, but with more shorting, it is more likely to happen.

2. Does your broker have the identical margin requirement for shorts as for longs? Mine doesn't; it is 5% more for shorts.

So for me if I make 30% on a short or 30% on a long, it is a lower return on the short.