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



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  hi chuck, this has confused me a little,

 i  understand how to work out longs with commisions e.t.c.,

 but shorts confuse me as i have never used them.

  Is it basically the same as  a losing trade when going long.

 e.g. i buy a stock at $1000 it goes to $500, i have lost %50.(on a 
long trade), but if this was a short trade i made %50.


 Peter.


--- In amibroker@xxxxxxxxxxxxxxx, "Chuck Rademacher" 
<chuck_rademacher@x> wrote:
> You should be able to do it with one formula.  I'm not much of a 
spreadsheet
> programmer, but offer the following tid-bits for you:
> 
> Column1 =  Dollars invested ($1,000 in each example, long or short);
> 
> Column2 =  Dollars profit,  simply what you sell it for (sell or 
short)
> minus what you paid (buy or cover).
> 
> Column3 =  Percent profit (column2 / Column1 * 100).
> 
>   -----Original Message-----
>   From: amiabilityy [mailto:amiabilityy@x...]
>   Sent: Wednesday, April 30, 2003 4:05 PM
>   To: amibroker@xxxxxxxxxxxxxxx
>   Subject: [amibroker] Re: how is the profit for shorts calculated?
> 
> 
>     Thanks chuck, this will make it harder to calculate in a spread
>   sheet.
> 
>   I was hoping to just reverse the short and cover columns and use a
>   long profit calculation.
> 
>   Peter.
> 
>   --- In amibroker@xxxxxxxxxxxxxxx, "Chuck Rademacher"
>   <chuck_rademacher@x> wrote:
>   > 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.
>   >
>   > Let's take the long example first, buying 100 shares.
>   >
>   > 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.
>   >
>   >
>   > Now, let's take the short example:
>   >
>   > 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.
>   >
>   >
>   > The most you can EVER make by shorting a stock is 100%.   The 
most
>   you can
>   > lose is your butt!
>   >
>   >
>   >   -----Original Message-----
>   >   From: peter j [mailto:amiabilityy@x...]
>   >   Sent: Wednesday, April 30, 2003 3:42 PM
>   >   To: amibroker@xxxxxxxxxxxxxxx
>   >   Subject: [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.
>   >
>   >
>   >
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