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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: DM who wrote (9852)	2/9/1999 10:35:00 AM
From: Land Shark	Read Replies (2) \| Respond to of 122087

Boxing is where you have a long and a short position at the same time with the same stock. If your boxed the net effect is zero if the stock moves up or down. Mostly its used as a trading strategy for shorting a stock at low price levels when shares are available. The trader goes long and short at the same time, lets the stock run up, when it peaks he unboxes it by selling the long position leaving him with a short position. The trader may also box if he is short and he feels that a squeeze is going to happen and there's a risk of a major run up.

To: DM who wrote (9852)	2/9/1999 10:36:00 AM
From: HRAKA	Respond to of 122087

For example.. 800 shares of ABC short 800 shares of ABC long same account fluctuations in ABC do not affect your account positively or negatively because the two positions cancel each other out on any price movement. Good tool for shorting if you believe there is gonna be a short run-up and you want to hold your short position because you will likely not be able to find shares to short when the stock hits its peak. I would call it a form of hedging. Hraka