Re:Hacker Posts Facebook Bug Report on Mark Zuckerberg’s Wall
by unreal37 on Sunday August 18, 2013 @12:08PM
(#6233058)
No, not really. You need to risk a lot of capital to make any money at all.
For instance, to make even $10,000 on a 5% drop in Facebook stock, you would need to sell short $200,000 in Facebook stock and would need to have $100,000 in cash deposited with a broker (initial margin). If the stock goes up by even a penny, you would need additional margin to cover that. A young hacker with no money cannot make any by shorting stocks.
Re:Hacker Posts Facebook Bug Report on Mark Zuckerberg’s Wall
by datadata on Sunday August 18, 2013 @01:05PM
(#6233286)
You could create a much more leveraged position with options. With a put option buy, your maximum loss is capped, so you wouldn't need any additional margin.
For instance, to make even $10,000 on a 5% drop in Facebook stock, you would need to sell short $200,000 in Facebook stock and would need to have $100,000 in cash deposited with a broker (initial margin). If the stock goes up by even a penny, you would need additional margin to cover that. A young hacker with no money cannot make any by shorting stocks.