Can someone explain this to me?

[Agent 0659]

WSEX live betting:

I buy(2 shares) of Vaughn Taylor at $8 a "share". I understand that if he wins, the "shares" are worth $100 a piece and if he does not win the shares are worth $0.

Ok, so my thinking is buy him cheap, sell him high if he makes a run, and make a profit. Well, Vijay begins to pull a way and Taylor is still trading at $4 a share. I decide to bail out sell the 2 shares I think I own. The sell goes through with a warning that says you are "shorting" this stock. Well suddenly, they deduct $100 from my account? Who, what, when, how, why? After the event, my $100 is credited back since he didn't win the tourney. I email them and their explanation is this:





In live Betting you can sell short, which means you can sell contracts you that don?t own in doing so it will credit you the selling price and restrict $100 from your account. In this case you sold Vaughn Taylor of which you did not own.

Please read our Live Betting Rules for further clarification on this.

Thank you for you choosing World Sports Exchange.


Kind Regards,


Why didn't I own them? I bought them? And what if I would have sold him at 1 point when he was trading at $14? What would my profit have been there?

Man, I am confused!

:shrug:

 

[yyz]

Do you have confirmation of buying him?

 

[Agent 0659]

Do you have confirmation of buying him?

I think so?

03/18/2007 15:06:04 Buy 1 PALMER-GOLF2007 VAUGHN TAYLOR $10 Complete Fill
Executed: Bought 1 $10 -$10

Looks like I bought 1 share at $10 not 2 shares at $8.

:s4: :mj03:

I was trying to tread lightly to see if I could figure this thing out, and was dam surprised when they zapped a hundo from my account!

 

[wareagle]

you bought one share at 10, then you sold two shares at 4...

the one long you had a loss of 6 bucks, then you went short taylor at 4 bucks...so 96 would be deducted from you acct because you were short him...he expired at zero obviously, so you actually made your 4 bucks on that short position....

it looks like to me net/net you lost 2$ total on they trades



listen to what happened to me...

i bought ohio state at $ 20 right before OT on saturday...they put together a run and go up by 8(line was 7')...they were now trading at around 75...well the OSU guy is at the FT line with 15 secs to go and i am trying like hell to sell my share, well it says the event is paused...i must of tried 10 times to sell that share...well xavier runs down the court and gets a garbage bucket to end up losing by 7, hence covering and my long OSU -7'expires at zero...it was complete bullshit

 

[Agent 0659]

Thanks War! So basically I shorted a stock I didn't even own? Sounds crazy! So I can go on there, own nothing and hit sell and short a stock, correct?

 

[wareagle]

Thanks War! So basically I shorted a stock I didn't even own? Sounds crazy! So I can go on there, own nothing and hit sell and short a stock, correct?

yes...just like a real market....i shorted Tiger on thurs night after he shot a 64 and made a nice penny.