Hi, What does the term "Gross Position Value" actually mean? Its quoted by IB as: "Long Stock Value + Short Stock Value + Long Option Value + Short Option Value + Fund Value" I can do maths, but am not an accountant. So, to use maths terms, does that mean the absolute value of the Long and short positions? Or does it mean the long deducting the short? Can you reduce your "Gross Position Value" if it was long, by getting some short stocks? In other words, can the long and the short offset one another, or not? Greatly appreciate any help
I'm not an accountant either, but undertand that no, it's not the net position (i.e. not L - S), but the sum (i.e. it's L + S). ... I think of it along the lines of "...you need funds to buy a long position, but account funds must also be put aside to cover open short positions..." I'm sure someone else here will be able to expain it better than that, though!