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3. Define Short Sales. Make sure you explain what a long position and a short position are. a. Now assume that that you short
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Long position: buying the share, with the expectation that share price will rise.
Short position: selling the share, with the expectation that share price will fall.

Account equity= amount of money deposited in the form of margin+ gain in the margin.

Sale proceeds= amount we get by selling the share in the short position.

Amount Armout Asset havines $25,000 Initial Maegin Sale proceeds $10,000 | Shoot position ( 500 x 50) $25,000 Account Equity

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