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Re: 8-9% rise in XJO index can this be overbought ?

I think this is more the point

Short 1000 shares at 10 dollars. Maximum profit $10,000 if they go to zero.
Buy 1000 shares at 10 dollars. Shares go to $infinity you have made infinity dollars.

If you had $8000 to spend:

1000 shares at $8 = $8000 Sell at $1 make $7000
8000 shares at $1 = $8000 sell at $8 make $64000

This is illustrative only as I think you are required to only front up with a deposit when shorting shares. Although for CFD's it certainly would be true as the margin is the same in either direction (ignoring interest differentials).

MIT

[QUOTE="mit, post: 15651, member: 1435"] [b]Re: 8-9% rise in XJO index can this be overbought ?[/b] I think this is more the point Short 1000 shares at 10 dollars. Maximum profit $10,000 if they go to zero. Buy 1000 shares at 10 dollars. Shares go to $infinity you have made infinity dollars. If you had $8000 to spend: 1000 shares at $8 = $8000 Sell at $1 make $7000 8000 shares at $1 = $8000 sell at $8 make $64000 This is illustrative only as I think you are required to only front up with a deposit when shorting shares. Although for CFD's it certainly would be true as the margin is the same in either direction (ignoring interest differentials). MIT [/QUOTE]

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