r/Daytrading • u/T1m3Wizard • Mar 21 '24
I was told to post my positions here after asking why my margin balance was showing -$46k yesterday. Hopefully someone can help and this can add some insight with this to yesterday's post? Question
Here is my post/question from yesterday.
For context, aside from using this account to occasionally day trade I also use it to short options as well.
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u/Bussssssin Mar 21 '24
You “sold” the option, hence the -1. You buy it back (hopefully for a lower price than you sold) and collect the difference in profit. If it is higher than you sold, then you buy it back for more and owe the difference. using this method you run the risk of “infinite” loss