LogFAQs > #965834671

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Topic	Stock Topic 37
Lopen 06/15/22 1:30:15 PM #101:	No that's not correct. Covering is margin neutral and requires starting liquidity to do so. Yes it reduces your margin use once you cover (which offsets the price of buying the asset, hence neutral) but actually closing a long position can't be done by tapping into more margin that isn't logical if you actually think about it. You have to start the ball rolling by selling a long asset. --- No problem! This is a cute and pop genocide of love! <cite>Lopen posted [p:965834671] in Stock Topi... [t:80025497]...</cite> <quote>No that's not correct. Covering is margin neutral and requires starting liquidity to do so. Yes it reduces your margin use once you cover (which offsets the price of buying the asset, hence neutral) but actually closing a long position can't be done by tapping into more margin that isn't logical if you actually think about it. You have to start the ball rolling by selling a long asset. --- No problem! This is a cute and pop genocide of love!</quote> ... Copied to Clipboard!
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