Messages posted in the past:

Message: 1615 From: Rik Rasmussen Received: Thu Apr 29, 2004 11:58 PM
Subject: RE: Re: another snag to keep in mind

I became weary of debating the gain on shorts long ago.

But at one time I asked the developer to change the calculation to match the
method I like to use and he did.

Short at $12.00

Cover at $10.00

Gain = $2.00

Bought to cover at $10.00

Sold to short at $12.00

Gain = $2.00

Gain = gain/buy price = $2.00/$10.00 = 20%

I know that others do not like looking at shorts this way.

Perhaps in a future version of BC you will be able to select the short gain
calculation method you prefer.


Rik Rasmussen
Best Charts Yahoo Group Moderator
http://groups.yahoo.com/group/bestcharts/

> -----Original Message-----
> From: jakobab [mailto:[EMAIL PROTECTED]
> Sent: Thursday, April 29, 2004 11:20 PM
> To: [EMAIL PROTECTED]
> Subject: [bestcharts] Re: another snag to keep in mind
>
>
> Rik - The percentage gain/loss should be based on the initial
> investment, no? On shorts, BC calculates the percentage by dividing
> the increment in price by the price at the close of the trade, not
> the initial price.
>
> Example - A loosing short trade that goes from 10 to 12 yields a 20
> percent loss. Initial price = 10, now worth 2 dollars less. Bc
> would say this is a 16.66 percent loss = 100*(2/12).
>
> It would be good if this is corrected some day. Hardly a big deal.
> ***********************
>
> --- In [EMAIL PROTECTED], "Rik Rasmussen" <[EMAIL PROTECTED]>
> wrote:
> > The whole idea about how you calculate gain on a short sale is the
> subject
> > of much dispute.
> >
> > Rik Rasmussen
> > Best Charts Yahoo Group Moderator
> > http://groups.yahoo.com/group/bestcharts/
> >
> > > -----Original Message-----
> > > From: jakobab [mailto:[EMAIL PROTECTED]
> > > Sent: Thursday, April 29, 2004 8:45 PM
> > > To: [EMAIL PROTECTED]
> > > Subject: [bestcharts] another snag to keep in mind
> > >
> > >
> > > As reported 4-5 months ago, the calculation method used by BC for
> > > reporting short sale profit/loss, grossly understates the
> > > percentage. Try it.
>





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