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no, this is not the real world

Posted by: ndmaster (a.k.a JonHH) on Feb 08, 06:22 in response to mbking92's post negative cash out shouldnt be possible

if you short a real option, you receive cash at that time. if it goes up, say from 2-5, and you cover it, you must repurchase it at the higher price. that is how your loss is accounted for. same thing here, but instead of receiving cash when you short it, your account is debited. if you make money on it, or at least don't lose more than you invested, you will receive cash when you sell it or it delists.





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