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| Chapter 8 - Owning and Trading Equities |
| 126 |
Under 8.1.3 Stop Order the buy order should read:
Buy 1000 DVC stop
$110:
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| 134 |
The Short Sell of Discovery Cafe with 150% margin requirement might be clearer with some intermediate steps.
| Figure 8-2: Short Sell of Discovery Cafe with 150% margin requirement |
| October 2 |
Short Sell 100 shares of Discovery Cafe at $98 |
$ 98,000.00 |
| Deposit to your Brokerage Account |
$ 49,000.00 |
| Transfer to Margin Account | - $ 147,000.00 |
| November 9 |
| Transfer from Margin Account |
$ 200.00 |
Pay dividend equivalent to JQ |
- $ 200.00 |
| December 12 |
Buy 100 shares of Discovery Cafe at $52 |
- $ 52,000.00 |
| Transfer from Margin Account |
$ 146,800.00 |
| Withdraw from your Brokerage Account | - $ 94,800.00 |
You began the trade with a deposit of $49,000 and ended the trade with a withdrawal of $94,800. This represents a profit of $45,800.
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