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CaptWhizbang

06/09/15 12:19 PM

#23661 RE: hopester #23660

Holdings are Long positions . A short can't be HELD. It's a borrowed stock which is immediately sold to someone else.



This is completely wrong and shows a serious lack of understanding regarding Longs and Shorts!!!

A shorter can hold his borrowed shares for as long as he wants seeking a profitable place to Buy-to-Cover. The only reason that would force him to sell would be because of a Margin Call.

Just as when you go long on margin, it's easy for losses to get out of hand because you must meet the minimum maintenance requirement of 25%. If your account slips below this, you'll be subject to a margin call, and you'll be forced to put in more cash or liquidate your position.


And Holders are not necessarily Longs!!!

http://www.investopedia.com/university/shortselling/shortselling3.asp