Been curious about this - so the short funds aren't capitalized
by themselves shorting the longs and so building in those costs in
some way?
- ie going long, say, SDS does not have the same dividend or
borrowing costs as going short SPY (ignoring the ultra doubling
aspect)?
Likewise as you say shorting a short fund costs less than going
long a long fund? so then the issue in costs is whether you are
shorting and not the nature of the fund beng long or short? Is that
so?
I've been favouring sticking with shorting SPY cos it makes my
overall picture of what I'm in cleaner, but would change that if
these costs are significant - please advise anyone who is clear on
it.
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help re short funds
Posted by kreem on 8th of Jul 2008 at 02:38 pm
Been curious about this - so the short funds aren't capitalized by themselves shorting the longs and so building in those costs in some way?
- ie going long, say, SDS does not have the same dividend or borrowing costs as going short SPY (ignoring the ultra doubling aspect)?
Likewise as you say shorting a short fund costs less than going long a long fund? so then the issue in costs is whether you are shorting and not the nature of the fund beng long or short? Is that so?
I've been favouring sticking with shorting SPY cos it makes my overall picture of what I'm in cleaner, but would change that if these costs are significant - please advise anyone who is clear on it.