Skip to main content

View Diary: Who in the heck are the 22% (147 comments)

Comment Preferences

  •  Short selling's dangerous (1+ / 0-)
    Recommended by:
    Trotskyrepublican

    Always take out out-of-the-money options to get rid of it in case you get hit by a temporary rally.  You can get killed by the collateral requirements even if you bet right.

    -5.63, -8.10. Learn about Duverger's Law.

    by neroden on Wed Jun 02, 2010 at 07:39:31 PM PDT

    [ Parent ]

    •  The other danger (0+ / 0-)

      Every now and then short-selling gets randomly (temporarily) banned by the government and all the short-sellers are forced to unwind at unfavorable prices, even though they bet right.
      It's happened at least twice (in different markets) in the last 3 years.

      -5.63, -8.10. Learn about Duverger's Law.

      by neroden on Wed Jun 02, 2010 at 07:40:44 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site