$AMC Entertainment (AMC.US)$ so help me understand something...
$AMC Entertainment (AMC.US)$ so help me understand something.
we got shorts selling today but the price is higher than the price they sold shares at. when do the shorts have to buy back when it's clear that the price is not going down. if they took a short position today?
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! Don't comment dum shit on my post if you don't even have a wife for me!
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RTZBB : there is no specific time brother. the way it works okay, is once a short position is in play, if the price continues to go up; they start to loose money on that position. The exact opposite of you buying a stock and loosing money if it were to go down. however, that is not everything to it.
on top of what I said about someone opening a short position (selling high, buying back low) there is a short "maintenance" that the person shorting the stock has to have up front. because they are SELLING the STOCK, instead of BUYING the STOCK. you heard me right, they sell the stock first and then buy the stock back.(lower, (selling the stock even though they don't have the stock)) and their short "maintenance" fee is the reason for that. and the more attention and the more shorting of a stock, will result in higher fee's. eventually making it so it doesn't make much sense to even short the stock in my opinion when the short maintenance fee gets into the several hundreds. and it does, quite often. and tbh, sometimes alot alot more.
that's it in a nutshell. the basic of basic version of it.
ur wifes boyfriend OP RTZBB : so what is your thoughts about the shares available to borrow keep showing up in the low millions every other day.
while the utialization is at 100%? in the borrowing fee relatively low?
Pochong ur wifes boyfriend OP : They returned all those borrowed shares to short sell back to the brokerage. As simple as that.
Piggy Bank Trader Cashcauterize : Well said!
rockindawg : Well, let's say one is shorting 100,000 shares and they sell them at 25.00 each. Every penny it drops is a thousand dollars profit.