Short Selling Strategies |
|
|
One variant of selling short involves a long position. "Selling short against the box" is holding a long position on which one enters a short sell order. The term box alludes to the days when a safe deposit box was used to store (long) shares. The purpose of this technique is to lock in paper profits on the long position without having to sell that position. Whether prices increase or decrease, the short position balances the long position and the profits are locked in (less brokerage fees).
|
|
|
|
