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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (728)	3/18/1998 7:43:00 AM
From: dpl	Read Replies (1) \| Respond to of 2120

Barbara,when you short a stock you are creating a credit in your account not a debit.Why would you pay interest on a credit balance? David

To: Mama Bear who wrote (728)	3/18/1998 1:43:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 2120

Barbara: as for short position, I only borrow stocks from other customers, not even from the Broker. I haven't borrowed the money from anybody. You mixed up between buy long and sell short. The broker already charges the interest from the customers who buy long. So they actually got 14% interest for the money they loan out -- 7% from the person to buy long, and 7% from the person who short the stocks. I think this is a rip off, period. I know, E-trade did not charge interest on Short position last year, I am not sure now. And I know there should be other brokers won't charge interest on short. And I remember somebody said Brown&Co even pay you the interest on short proceeding. I just want somebody to clarify. Good luck.