Best Short Position On China What's The Reasoning Behind The Law That You Can't Have A Long And Short Position Of The Same Stock?
What's the reasoning behind the law that you can't have a long and short position of the same stock? - best short position on china
Not allowed to own a stock and a short position in the same population, at the same time (without closing the position). What is the reason behind it? It makes sense from the practical point of view, but why should a law?
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5 comments:
I did not know he was a law, but it has practical applications and can be slightly different, with two aisles.
Suppose you want in an action which relates to the profit and I do not know how we could go.
Corridor 1: Enter a purchase 1000 shares at $ 10.00 then a number to $ 9.90.
Case 1: The profits are good, the stock rises, and money.
Case 2: Shares gain poor and weak, you have left out after the loss of 10 cents.
Corridor 2: Write a short 1000 shares for $ 10.00 to $ 10.10 then a number
Case 1: The profits are good and the stock rises, the left, you can look for the loss of 10 cents.
Case 2: Shares gain poor and weak, you make money.
But in case 1, the result is good and the population begins to rise. When it comes to $ 10.10, 10 cents, in the long, at 10 cents on the square - the threshold of profitability. But to stop now, stop short kicks to their losses, while the weather continues to increase at $ 10.20, $ 10.30, while all decisionsMoney.
It's the same thing in reverse if the revenues are bad. You're falling (falling), regardless of how the increase in stocks.
I've never done that with stocks, but they have done for this reporting in the foreign exchange market, where it is common practice.
to fill the position of the
to fill the position of the
because it really makes no sense!
You bet against yourself if you're going to win or lose .... and if it is to win and lose, so what's the point?
If you think the title is a big step up or down, you can buy an option and an option on him and the benefit, if the movement goes in both directions.
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