Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Waterhouse Securities -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (635)	7/30/1998 9:17:00 AM
From: margin_man	Read Replies (1) \| Respond to of 2076

What are the commissions ? The same as a long position. Are they usually successful in finding stock for you ? Not 100%. What are the account balance requirements to open the short ? You have to have margin available and you can short up to your available buying power. What are the account balance requirements if the short position goes against you ? 35% equity. What happens to the proceeds of short sale ? Will be computed & added to your equity daily. Are you charged any interest while the short is open ? Yes. P.

To: upanddown who wrote (635)	7/31/1998 4:52:00 PM
From: richard	Respond to of 2076

Dear John, Patriot has it well put . The only thing I can add is that it is just the reverse of long trading and if you are shorting some big cap stock there shouldn't be a problem w/ getting shares to short . I would add it is just the reverse of going long in a margin account ,because in a margin acct. a person allows Waterhouse to use their shares for someone else to use( you can also borrow in effect money to buy more shares of a particular stock by using your stock as collateral and then you pay the interest) . So you sell short at the bid. Look at any shortable stock the bid is what you get . So then after the stock goes up or down whichever . You buy back at the ask price, called buy to cover . ( to reverse the sell which you did earlier)The difference is the profit or loss . Then the stock can go back in the other persons acct.from which they borrowed they actually borrowed the stock for you to sell . I don't know alot of the acct. details , sorry :) but best of luck in your trading. Remember do you own homework . Yours Truly, richard