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Thanks chuck.
--- In amibroker@xxxxxxxxxxxxxxx, "Chuck Rademacher"
<chuck_rademacher@x> wrote:
> I seem to be confusing you, sorry. I'll try again.
>
> For longs and shorts, your dollars profit = sell (or short) price
minus buy
> (or cover) price.
>
> The only difference is "how much did you invest?".
>
> For longs, it's the dollars invested when you buy.
>
> For shorts, it's the dollars invested when you short.
>
> In both cases, it's the dollars invested on your FIRST transaction.
>
> In both of your original example, that figure was $1,000.
>
> I'll give two examples, including commissions:
>
> Long Trades:
>
> 1,500 (sell price * number of shares)
> -1,000 (buy price * number of shares)
> -30 (buy commission)
> -30 (sell commission)
>
> 440 (net profit in dollars)
>
> 44% (440 / 1000 * 100) = percent profit
>
>
> Short Trades
>
> 1,000 (short price * number of shares)
> -500 (cover price * number of shares)
> -30 (short commission)
> -30 (cover commission)
>
> 440 (net profit in dollars)
>
> 44% (440 / 1000 * 100) = percent profit
>
>
>
>
> -----Original Message-----
> From: amiabilityy [mailto:amiabilityy@x...]
> Sent: Wednesday, April 30, 2003 4:28 PM
> To: amibroker@xxxxxxxxxxxxxxx
> Subject: [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@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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