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TREND1

01/03/05 8:38 PM

#63424 RE: player1234 #63418

player1234

I learned, back in 1982, if you "sell short" a stock,
and you have a very good account.

They actually put the sale money in your account

Now Schwab, Etrade, etc do not do that.
They keep the money and put it "their accounts"

Yes when you sell some thing, there is money from the sale.

So the calculation of returns become interesting.

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trustcousa

01/03/05 8:41 PM

#63425 RE: player1234 #63418

Player, You have to consider the leverage factors which include the margin requirement and margin rates during the duration of the open short. No?
TCO