Basically, when a stock price goes down by 50%, my profit is 100% of my sell price. When a stock goes down by 75%, my profit is 300% of my sell price.
I'm curious what the relationship is between the % decrease of a stock's price and the % gain on my investment.
Here is a chart that shows what I'm asking. If the price of a stock goes down by the number in red, my profit is the number in green. One line is linear and one is logarithmic, but I cannot find the relationship between these 2 numbers. It's so simple it seems like there would have to be a pretty direct relationship there. This is more of a mathy question, but I'm hoping someone here might have insight. Taking the % down a stock is and converting it to your profit seems very useful when you have a short position and you're watching a stock's price.