HSX Forum

Playing & Trading Strategy

Answer INSIDE.

Posted by: RotoHockeyYTD2013MainPort (a.k.a RotoHockey2013MainPort) on May 10, 19:17 in response to spudboy2's post A question about shorting and covering.

Not Confusing at all.

SHORTING at 0.25 without SELLING would produce ZERO (0.00) Profit if it fell back to 0.10 as you would have 100,000 LONG & 100,000 SHORT. You would make PROFIT on the SHORT and incur an Off-Setting LOSS on the LONG.

Given the Above Facts, the Correct Play would be SELL & SHORT at 0.25, then COVER & BUY when it fell back Down to 0.10.

There is 0.02 Commission on Trades involving Securities under 2.00, which would Reduce the Net Profit.

best Wishes.

 





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