HSX Forum

Playing & Trading Strategy

Covering Shorts frees up cash to spend on other things.

Posted by: Yowster on Jun 04, 12:55 in response to MattW's post Kind of weird question about shorting when you have...

When you need more H$ to spend on other things, then covering a very successful short and then re-shorting it will make the available cash in your account grow.  You do lose a little on the commission in these trades, but if you want to spend the newly freed up cash on a something that you view as a good bet then its well worth it.   I recall many years ago (when my account was small enough that I could run out of case), I'd take advantage of the "commission free Saturdays" to cover and re-short successful short trades to free up cash to spend on other things.   Now that there are no more commission free days, you can do this when you really want to place a new trade but don't have enough cash.





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