Dear All,
1- Let's say I sell 1000 USD equivalent of Euro which is 744 EUR. Then next day I buy back 744 EUR pay 990 USD. I gain $10 , but I didn't invest any capital ( except fees and interest) . what is my return? In most short selling web sites would say 10/1000 = 0.01 % . But this doesn't seem logical to me.
2- Even more, I can buy another currency with to 1000 USD I got from previous step, say 1080 CAD, then sell it again next day for 1010 , and make another $10 . Again no capital and $20 gain , return is ??
PS: I have an portfolio margin account at IB, meaning I can leverage and imagine I am fully long all my capital in stocks.
1- Let's say I sell 1000 USD equivalent of Euro which is 744 EUR. Then next day I buy back 744 EUR pay 990 USD. I gain $10 , but I didn't invest any capital ( except fees and interest) . what is my return? In most short selling web sites would say 10/1000 = 0.01 % . But this doesn't seem logical to me.
2- Even more, I can buy another currency with to 1000 USD I got from previous step, say 1080 CAD, then sell it again next day for 1010 , and make another $10 . Again no capital and $20 gain , return is ??
PS: I have an portfolio margin account at IB, meaning I can leverage and imagine I am fully long all my capital in stocks.
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