Comments on: Making and Losing Money from Longing and Shorting

By: rn

rn — Mon, 27 Apr 2009 12:42:17 +0000

A silly question, but how does the broker make money when he’s repaid in shares that are now worth less.

By: LBC

LBC — Sat, 27 Sep 2008 09:22:25 +0000

Very nice explanation.

One more point: when shorting by buying options, you have the additional disadvantage of having a time limit in which the transaction must end. If you’re buying and holding stock to realize gains, you can pick your own time horizon in which to sell.

By: ignatov

ignatov — Sat, 27 Sep 2008 03:31:22 +0000

Great stuff, Joey! Love the illustrations. Hey, can you explain why we spend five cents to make a penny?

By: Anita Kuno

Anita Kuno — Fri, 26 Sep 2008 16:02:09 +0000

I think I understand shorting best when I look at my US funds credit card.

For every $100 I spent on goods using American Funds, I have to pay either $103 Canadian or $97 dollars Canadian depending on the day (example does not include bank exchange fees).

Interesting fluctuation in values.

By: John Bowman

John Bowman — Thu, 25 Sep 2008 20:50:43 +0000

Reminds me of your old comics in GW and MiSC (RIP).

By: darryl

darryl — Thu, 25 Sep 2008 08:15:30 +0000

Nice explanation. I first began to understand shorting from this scene in Trading Places but your way seems more fun.