A stock, in the first year, cost 128 dollars; in the second, cost 64...(adsbygoogle = window.adsbygoogle || []).push({});

D - Price

1 - 128

2 - 64

3 - 32

4 - 16

If I buy 100,000 dollars of this stock @ 128 dollars / share, so, in the second year I will lost 50,000 dollars (50% of 100K). In the third... ok, ok, easy...

When I buy stock, my capital is directly proportional to share's price and the percentual variation is equal to stock' percentual variation. Ok. No doubts about this.

My doubt is about when I short selling a stock, because the capital is not propotional to stock's price and the percentual variation is not equal between the capital and the price.

If I short selling the same share in the first example with a financial volume of 100,000 dollars. My capital will be:

D - Capital

1 - 100,000

2 - 150,000

3 - 175,000

4 - 187,500

So, exist some implicit rule of proportionality in short selling? Some math relationship using log function?

Since now, thanks guys....

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# B How to calculate the gain or loss percentage in short sell?

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