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Non-Tech : SATH - Shop At Home -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (806)	2/9/1999 2:54:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 1329

ztect, I have a boxed position in SATH at the moment in one account. That's long in type 2, and short in type 5. The maintenance requirement is 5% of the long side so the loss of buying power is inconsequential. I use the strategy because my broker sends all short sells off to be reviewed by a live broker. I can sell the long side of a boxed position on demand. Another reason is that sometimes availability of shares to borrow dries up, and if I'm boxed, I have the borrow. Genuine answers. Barb

To: ztect who wrote (806)	2/9/1999 2:56:00 PM
From: Rajiv	Read Replies (1) \| Respond to of 1329

Re : Boxing... Let us take XYZ for example.. If you are short 1000 shares and XYZ is 110 - an average retail investor needs to put up 50% for the short position (the maintenance requirements is around 30%). If you box this position. You are long 1000 shares of XYZ and short 1000 shares of XYZ. If you do this in the same account, the margin requirements can be as low as 5% of the amount involved (maintaining a boxed position requires less capital than a pure long or pure short positions). By being boxed, you are market neutral - you do not lose/make any more money (irrespective of the stock price movement) Advantages - - To attempt to increase your basis by a few points by unboxing at a higher level - You do not have to worry about being able to borrow the shares later as you are already short. - Lower margin maintenance requirements If you check the AMZN thread, there are a bunch of people who box their position frequently. Regards. Rajiv -

To: ztect who wrote (806)	2/9/1999 3:24:00 PM
From: Tom Hua	Read Replies (2) \| Respond to of 1329

Genuine questions....no malicious or hidden intent. ztect, an honest person would not have to say such a thing. Makes people wonder about your character. Haven't you noticed that when someone says "it's not about money", it is about money, or, "to make a long story short", it's already too late, the story is way too long . I do believe you're genuine in asking the questions. But your past posts have severely damaged your reputation. Regards, Tom