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To: WallStBum who wrote (7667)4/1/1998 6:57:00 PM
From: Arvinder Malhotra  Respond to of 16892
 
A Newbie question on shorting?

If I have buying power of $10,000 and short stock xyz for the whole amount, my account will be credited with $10,000 because I sold $10,000 worth of stock. What happens to my buying power after the short trade. When the stock goes down and I want to buy, do I have some buying power in the account. What happens when the stock goes up? I had $10,000 worth of buying power to start with. How do I calculate the numbers? Assume I had $10,000 worth of stock to start with, which gave me the original $10,000 buying power.

Any help would be apprecaited.

Regards
Arvinder