Does shorting stock cause your account value to go up?
Does shorting stock cause your account value to go up?
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Lightsout · External communityPost link
External question — Personal Finance Stack Exchange
Author: Lightsout
Original post: https://money.stackexchange.com/questions/146658
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Does shorting stock cause your account value number to go up?
Specifically for IB but most broker have a number that shows the total value of your account
Stocks + cash + any other investment.
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Bob Baerker · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob Baerker
Original post: https://money.stackexchange.com/a/146659
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Shorting a stock increases the amount of cash in your account but it does not increase the value of your account because there is an offsetting short position whose value is negative (you must buy it back to close it).
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Lightsout Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/questions/146658 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Does shorting stock cause your account value number to go up? Specifically for IB but most broker have a number that shows the total value of your account Stocks + cash + any other investment.
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