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Re: Yanik post# 27966

Tuesday, 07/21/2009 12:12:05 AM

Tuesday, July 21, 2009 12:12:05 AM

Post# of 83044
Is this the kind of shorting we have going on here? Shorting against the box means that you enter into a short position at the same time that you own shares in a long position. In order to close out the short sale you can either buy shares or use shares that you own ( from your long position ) in order to deliver or replace the shares that you borrowed when you entered the short sales.
Shorting against the box is considered a perfect hedge because your financial position doesn't change if the stock goes up or if it goes down.

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