Short Sale Proceeds Credit

The proceeds from the short sale of a stock applied as a credit to your account. For example, if you have $20,000 cash in your account and you short sell $10,000 of stock, your account balance will be $30,000 ($20,000 cash and $10,000 short sale proceeds credit). The market value of the short position is -$10,000, so the net worth of the account is still only $20,000.

 Since the market value of a short position is calculated as a negative, short sale proceeds are canceled out assuming that the stock does not experience any price movement.