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Thanks, Sophie, of course you're right. When the broker says that "short sales are subtracted from equity" it's misleading. The *shares* subtract from equity, but the cash proceeds from the sale add equally to equity (unless the cash is withdrawn). On a standalone basis, both the long...

My broker's margin requirements are 50% of the stock value on both long and short positions. When short positions are opened, the proceeds add to cash and subtract from equity. What I'm trying to understand is the arithmetic of applying these requirements to market neutral pairs. Let's say...