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To: bluejeans who wrote (7498)	3/24/1998 1:20:00 PM
From: dumbmoney	Read Replies (1) \| Respond to of 16892

<< another way to help explain this is to use Jon's example, but go long instead of short. The amount to pay margin interest on will be the same as his example when going short. This makes the final result more logical to me. >> The situation is not symmetrical, however. In the case of going long on margin you are borrowing money, so it makes sense to pay interest. But going short does not consume cash (quite the opposite, it generates it).

To: bluejeans who wrote (7498)	3/24/1998 2:29:00 PM
From: dpl	Read Replies (2) \| Respond to of 16892

I hope your making a joke.When you buy on margin you are borrowing money.You create a debit. When you short you are creating a CREDIT.I have never heard of paying interest on a credit balance from a short.