Percent Calc Problem

E

earth_imperator

Hi,
if a short position is in the reds, say $-200, and then makes some gains so that now the position is worth $-100, then how much is this last PL change, expressed in percentage? Is it +100% or +50%?
 
earth_imperator said:
Hi,
if a short position is in the reds, say $-200, and then makes some gains so that now the position is worth $-100, then how much is this last PL change, expressed in percentage? Is it +100% or +50%?
More...
%%
ITS making progress+ most likely makes a profit;
but its still down[- negative %] .You asked 2 different question ; as far as US dollars, i figure it most likely is profitable, on the cash underlying.
OPTIONS; i'm not going to speculate on that % or option cash value . But on a CASH ETF, or stock basket that's my % + cash comment.
On a$1,000 position /its 20%[$ 100, then 200 gross profit total]
 
SunTrader said:
Too little info.

It is a percentage of X - which you haven't provided.

X being total account balance or how much of it used for this particular trade.
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%%
I like the way SCHW does it; on one of thier measures\ if you deposit say 10% extra cash, they call that a 10% gain LOL:D:D IF only it was that easy all the time. Speaking of cash markets i did book trade , this week my one book for 10 books , that seldom happens also even in a cash market:caution::caution:
 
Zwaen said:
Simple percentage gain/loss is always calculated from your ‘starting point’.
r = (Pt1-Pt0)/Pt0

so you need these 2 values to define r, without this it has no meaning
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I already have given them: a change of value from previously -200 to now -100.
The problem I encountered is that when negative numbers are involved then the usual normal percent calculation formula does not work; one rather needs to apply some transformation. So I was not sure what the correct result should be. Now I think the correct result has to be the +100% (not the +50%).
 
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earth_imperator said:
I already have given them: a change of value from previously -200 to now -100.
The problem I encountered is that when negative numbers are involved then the usual normal percent calculation formula does not work; one rather needs to apply some transformation. So I was not sure what the correct result should be. Now I think the correct result has to be the +100% (not the +50%).
More...

As others have said, you haven't provided enough information, even if you think you have.

Let me ask you this: suppose your PL at time 1 is $25 and your PL at time 2 is $100. What is your percent change in PL? Normally we would say it is 75 / X, where X is the total account value, the amount at risk, or the notional value of the contracts, etc.

Alternatively, you might tell me that it is 400%, representing the fact that your PL is now 4 times larger at time 2 than it was at time 1. (ie: You want the percentage gain *in PL*, not the percentage gain on the account.)

Your answer to this will help us understand what you actually want to measure.
 
earth_imperator said:
Hi,
if a short position is in the reds, say $-200, and then makes some gains so that now the position is worth $-100, then how much is this last PL change, expressed in percentage? Is it +100% or +50%?
More...
If you record your first measurment at -200 then take a measurment at-100, the negative value has decreased 50%, holmes.
How much wood could a woodchuck chuck?
Extra credit, how do you use one of these with a suit and wangtips on?
https://www.aswesawit.com/asian-toilet/
 
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