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CSX Errors

242 messages,  Last post on Nov 03, 2008 at 6:55 AM

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#23 of 242
Re: Short Cover Error [cheapskate77] by xed
Feb 28, 2008 (1:42 pm)
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Replying to: cheapskate77 (Feb 28, 2008 1:29 pm)

Because your initial transaction was a short, you paid the inverse of the stock's current price. This means, based on the info you've posted, that the current price of the CRLA was $403.35, and thus you paid $596.65 for 370 shorted shares. Then, when you went to sell/cover, you paid $495.27 (the stock's new inverse), which means that the stock's price had moved to $504.73--the stock's price had moved up after you placed your short, so it stands to reason that you lost money.
 
Please check my explanation of shorts elsewhere on this board to see if that helps shed any light on things.
#24 of 242
Re: Short Cover Error [xed] by xed
Feb 28, 2008 (1:50 pm)
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Replying to: xed (Feb 28, 2008 1:42 pm)

One thing I should add to this is that it looks like the Corolla is trading on a $0-$1000 scale, and the other stocks are trading on a $0-$100 scale. This means that 1) there's no point in bidding a stock at $98 up much further, as it really has nowhere to go (unless its' the Corolla) and 2) that high-end number ($100 or $1000) is the number that you subtract a stock's current price from to get its shorting inverse.
#25 of 242
Re: Short Cover Error [xed] by mikedrud
Feb 28, 2008 (1:54 pm)
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Replying to: xed (Feb 28, 2008 1:50 pm)

That formulation works for today's market, but as prices continue to fluctuate based on activity, auto news, unit sales info on vehicles (the basis of IPO prices), etc. we might see a slide in the valuation of many stocks.
 
The Corolla is one of the best-selling, most popular cars in the marketplace, so it zoomed into the stratosphere as soon as we opened the market. It may not remain in the 0 - 1,000 price range, though.
 
Mike
CSX Game Supervisor
#26 of 242
Re: Short Cover Error [xed] by cheapskate77
Feb 28, 2008 (2:09 pm)
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Replying to: xed (Feb 28, 2008 1:42 pm)

I'm not sure where you're getting $403.35 or $504.73 in your explanation. I shorted at $596.65 and covered at $495.27. That should be a profit of $101.38/share. The rules don't talk about inverse prices:
 
"just buy back the same number of shares you originally sold short and your profit will be the difference between he original sale price and the current price"
 
I don't think I'm confused on how shorting works. Slap me if I am, though.
 
Again, thanks for the help!
#27 of 242
Hmmm by doctorlove
Feb 28, 2008 (2:21 pm)
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How in the world are supposed to know when we can sell/buy something when the actual buy/sell price can be HUNDREDS of a percent difference from what it says the last trading value is?
#28 of 242
Re: Hmmm [doctorlove] by xed
Feb 28, 2008 (2:25 pm)
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Replying to: doctorlove (Feb 28, 2008 2:21 pm)

The only time you're going to see a price that's quite different than the stock's "buy" price (which is what's shown on the stock page, stock list, etc.) is if you're shorting, and the rule of thumb there is that you pay the stock's inverse out of $100 per share (and out of $1000 per share for the CRLA).
#29 of 242
Re: Short Cover Error [cheapskate77] by xed
Feb 28, 2008 (2:30 pm)
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Replying to: cheapskate77 (Feb 28, 2008 2:09 pm)

No slapping necessary. Shorting, especially the auto-covered variety that's done in this game, can be tricky to understand. Check out this post and see if it makes things a little more clear.
 
Adding to that, I should point out that the transaction list on the Portfolio page is showing the inverse prices for short and cover transactions, so if you see a short $10, and then a cover at $20, this means that you shorted the stock when its "buy" price was at $90, and covered it at a buy price of $80, so you made money because it did indeed go down. However, in your case, if the cover price is lower than the short price, because both are inverses of the "buy" price, you know that the "buy" price went up and you lost money.
 
I think the rules are correct when they discuss the "difference between the original sale price and the current price", it's just unclear that the prices shown in the transaction list for shorts and covers are not the stock's actual price, but the inverses (which you pay when you do a short or a cover).
#30 of 242
Re: Short Cover Error [xed] by british_rover
Feb 28, 2008 (3:03 pm)
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Replying to: xed (Feb 28, 2008 2:30 pm)

Well then someone needs to amend the rules to explain how shorting actually works for this game because for people who know how shorting works for real stocks it is confusing as hell.
#31 of 242
Re: Short Cover Error [british_rover] by louiswei
Feb 28, 2008 (3:29 pm)
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Replying to: british_rover (Feb 28, 2008 3:03 pm)

Rover, it has been stated very clearly in the help page, give it a read.
 
It was confusing to me at first too but the help page really helped a lot.
#32 of 242
Re: Short Cover Error [louiswei] by mikedrud
Feb 28, 2008 (3:33 pm)
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Replying to: louiswei (Feb 28, 2008 3:29 pm)

Admittedly, it's a complicated issue, and we want to make things as clear as possible. We may refine our description in the future to help with Shorting in general.
 
Thanks,
 
Mike
CSX Game Supervisor

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