Why does the short trader have nothing in his account? You can't short without money in your account.
I give up. This is the last time I will even speak to this as it is absolutely ludicrous. Trader 1. 10,000 in his account buys 1000 shares at 10.00 sets his stop at 8.00 gets stopped out. He now has 8000 in his account trade 2 10,000 in his account sells short 1000 shares at 10.00 He now has 20,000 in his account He sets his stop at 12.00 the stock moves to 12 and he gets stopped out. He covers, and they remove 12,000 from his account He now has 8,000 dollars both accounts are equal both accounts risked equal amounts. This is the way it works. Period. End of story. Done. Your wasting my time now. see ya
Because the profits on the long side of TZOO began closer to $10 than $100, and the profits on the short side began closer to $100 than $10. Why should they both start at $100? So that we can make an imaginary 90 point move on the long side after $100?
F that noise...what if the shorter wanted to short at $10? Then the starting capitalization would be the same.
LOL you're posting this like I'm saying it isn't true. I'm not saying that at all. What you posted is true, but it doesn't disprove what I posted, so wtf is your point?
Yes, there's different. You need a margin account for shorting stock while going long you don't have to have a margin account, a cash account is sufficient. LOL.