RE: [amibroker] how is the profit for shorts calculated?

["Chuck Rademacher" <chuck_rademacher@xxxxxxxxxx>]

I wish 
you were correct about shorting at $10 and covering at $5 giving you a 100% 
profit.  Unfortunately, it's only a 50% profit.
<FONT face=Arial color=#0000ff 
size=2> 
Let's 
take the long example first, buying 100 shares.
<FONT face=Arial color=#0000ff 
size=2> 
You 
buy a stock for $5.
You 
sell it at $10.
You 
invested $500 and made a $500 profit
You 
have made a 100% profit.
<FONT face=Arial color=#0000ff 
size=2> 
<FONT face=Arial color=#0000ff 
size=2> 
Now, 
let's take the short example:
<FONT face=Arial color=#0000ff 
size=2> 
You 
short a stock at $10.
You 
cover at $5.
You 
invested $1000 (not $500) and made a $500 profit.
You 
have made a 50% profit.
<FONT face=Arial color=#0000ff 
size=2> 
<FONT face=Arial color=#0000ff 
size=2> 
The 
most you can EVER make by shorting a stock is 100%.   The most you can 
lose is your butt!
<FONT face=Arial color=#0000ff 
size=2> 
<FONT face=Arial color=#0000ff 
size=2> 
<BLOCKQUOTE 
>
  <FONT face="Times New Roman" 
  size=2>-----Original Message-----From: peter j 
  [mailto:amiabilityy@xxxxxxxxx]Sent: Wednesday, April 30, 2003 3:42 
  PMTo: amibroker@xxxxxxxxxxxxxxxSubject: [amibroker] how 
  is the profit for shorts calculated?
   
   This is about my tenth attempt to post this, i hope the other 
  posts  dont appear.
   
   Hi members.
    I have a question about short trades.
    Is the profit basically worked out similar to a long profit.
   e.g. the buy to sell value
   In a short trade could the profit be worked out in reverse ( 
  not in reference to ami, will be used for a spread sheet)  
    e.g.  If the short was $10.00 and the cover was $5,  
  could i reverse these and say that there was a %100 profit.
   or are there oddities when working out the  profit of a short 
  trade.
    Peter.
  
  
  Do you Yahoo!?<A 
  href="">The New 
  Yahoo! Search - Faster. Easier. Bingo. Send 
  BUG REPORTS to bugs@xxxxxxxxxxxxxSend SUGGESTIONS to 
  suggest@xxxxxxxxxxxxx-----------------------------------------Post 
  AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx (Web page: <A 
  href="">http://groups.yahoo.com/group/amiquote/messages/)--------------------------------------------Check 
  group FAQ at: <A 
  href="">http://groups.yahoo.com/group/amibroker/files/groupfaq.html 
  Your use of Yahoo! Groups is subject to the <A 
  href="">Yahoo! Terms of Service. 







Yahoo! Groups Sponsor












Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx 
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html



Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.