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system
why does the calculation for percentage profit vary based on whether a position is short vs. long?
user
simple math: 50-25=25, hence decline from 50 to 25 is a 50% decline (you lose half), while an advance from 25 to 50 is 100% gain (you gain 100%, double your 25 to 50). their point is that if you have more upswings than downswings - you'll gain more on long positions during upswings than on short positions during downswings on average. again - simple math.
assistant