When you short...
Your stake is basically the maximum you can make. You are selling shares someone else owns at today's price with a promise to buy the shares back within a certain time period and hand them back. You then trouser the difference.
The most he could have made was 65k.
( , Fri 21 Apr 2017, 10:36, Share, Reply)
Your stake is basically the maximum you can make. You are selling shares someone else owns at today's price with a promise to buy the shares back within a certain time period and hand them back. You then trouser the difference.
The most he could have made was 65k.
( , Fri 21 Apr 2017, 10:36, Share, Reply)
That assumes the share price drops 100% to zero.
Under such extreme circumstances I think the deal might just be null and voided in the small print.
( , Fri 21 Apr 2017, 10:40, Share, Reply)
Under such extreme circumstances I think the deal might just be null and voided in the small print.
( , Fri 21 Apr 2017, 10:40, Share, Reply)
Indeed it does.
Seems like a huge amount of effort and risk for a maximum potential gain of 65k.
( , Fri 21 Apr 2017, 10:46, Share, Reply)
Seems like a huge amount of effort and risk for a maximum potential gain of 65k.
( , Fri 21 Apr 2017, 10:46, Share, Reply)
I was surprised he could find a bank or fund to short with when his capital was so low and was leveraged.
Anyway, this game is about yield not the pound note figure.
( , Fri 21 Apr 2017, 10:51, Share, Reply)
Anyway, this game is about yield not the pound note figure.
( , Fri 21 Apr 2017, 10:51, Share, Reply)
And now he can look forward to yielding his bum in the prison showers for the rest of his life.
( , Fri 21 Apr 2017, 11:00, Share, Reply)
( , Fri 21 Apr 2017, 11:00, Share, Reply)
yes, but it's always leveraged.
In this case he was trading options contracts - which are leveraged anyway - and probably trading on margin so perhaps a tenth of the contract up front.
( , Fri 21 Apr 2017, 12:06, Share, Reply)
In this case he was trading options contracts - which are leveraged anyway - and probably trading on margin so perhaps a tenth of the contract up front.
( , Fri 21 Apr 2017, 12:06, Share, Reply)
Yes.
What I meant was he had no capital at all so he took a loan to even get the deal set up.
( , Fri 21 Apr 2017, 12:19, Share, Reply)
What I meant was he had no capital at all so he took a loan to even get the deal set up.
( , Fri 21 Apr 2017, 12:19, Share, Reply)