Question - Buying/selling And Short A Stock

Discussion in 'Stocks' started by Compulsive, Oct 24, 2008.

  1. A friend of mine calls me and tells me he bought TRMP at .61 last week and sold today at .80 He was thinking of buying it back at .65 TODAY.

    Now I know that in the FUTURES market the same scenerio, if I were to purchase today at .65 (it doesn't matter what it is) and I had orginally sold it at .80 TODAY, that trade would be considered a DAY TRADE and I will still be long at .61

    DOES IT WORK THE SAME WAY IN STOCKS?
     
  2. In futures you may buy/sell all the times you want during the day, what matters is how you end up the day.

    With futures when you sell not necesarily closes your first long, so accounts usually average your positions.

    With futures you may even place a stop order even if don't have opened positions.
     
  3. Bro, I know about the futures .....I am talking about stocks...:confused:
     
  4. Normal accounting for stocks is FIFO not LIFO.