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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: margin buying or short selling?

margin buying or short selling?

posted on Oct 14, 2008 10:19PM

What do you think guys?

Is buying on margin as bad as the short selling is?

After all when you buy on margin you are buying share which are belong to your loan provider which in return issue a margin call when your bet is wrong and you are contributing to the down pressure on the SP.

When you enter a short position you borrow shares from your stockbroker. When your bet is on the wrong side you are actually positively contributing to the long term shareholders value.



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