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I seem
to be confusing you, sorry. I'll try again.
<FONT face=Arial color=#0000ff
size=2>
For
longs and shorts, your dollars profit = sell (or short) price minus buy (or
cover) price.
<FONT face=Arial color=#0000ff
size=2>
The
only difference is "how much did you invest?".
<FONT face=Arial color=#0000ff
size=2>
For
longs, it's the dollars invested when you buy.
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For
shorts, it's the dollars invested when you short.
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In
both cases, it's the dollars invested on your FIRST
transaction.
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In
both of your original example, that figure was $1,000.
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size=2>
I'll
give two examples, including commissions:
<FONT face=Arial color=#0000ff
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Long
Trades:
<FONT face=Arial color=#0000ff
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<FONT face=Arial color=#0000ff
size=2> 1,500 (sell price * number of
shares)
<FONT face=Arial color=#0000ff
size=2> -1,000 (buy price * number of
shares)
<FONT face=Arial color=#0000ff
size=2> -30
(buy commission)
<FONT face=Arial color=#0000ff
size=2> -30
(sell commission)
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2> 440 (net
profit in dollars)
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2> 44% (440 /
1000 * 100) = percent profit
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>
Short
Trades
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial
color=#0000ff size=2> 1,000 (short price *
number of shares)
<FONT face=Arial color=#0000ff
size=2> -500
(cover price * number of shares)
<FONT face=Arial color=#0000ff
size=2>
-30 (short commission)
<FONT face=Arial color=#0000ff
size=2>
-30 (cover commission)
440 (net profit in
dollars)
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2> 44% (440 /
1000 * 100) = percent profit
<FONT face=Arial color=#0000ff
size=2>
<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: amiabilityy
[mailto:amiabilityy@xxxxxxxxx]Sent: Wednesday, April 30, 2003 4:28
PMTo: amibroker@xxxxxxxxxxxxxxxSubject: [amibroker] Re:
how is the profit for shorts calculated? 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@xxxx]> 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@xxxx]> > 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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