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dailyramadah

Registered: Jul 2012
Posts: 6

07-31-12 01:59 PM

Hey guys,

I'm new to trading so please don't be too hard on me.

When I'm shorting stocks, sometimes the stocks are unavailable to short. Is there a reason for this? Can someone explain to me why this is and how I can know before I want to enter a trade whether the stock will be available or not?

Thanks!

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1245

Registered: May 2012
Posts: 510

07-31-12 02:48 PM

Short a stock you don't have requires the brokers to find a "locate" and give you permission to short the stock so they can make good delivery.

If your firm can't get a locate, you can't short it.

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hoodooman

Registered: Jun 2003
Posts: 4421

07-31-12 03:20 PM

Even interactive brokers has this problem sometimes. If it happens alot then
I would look for another broker.

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dailyramadah

Registered: Jul 2012
Posts: 6

07-31-12 04:22 PM

So it's up to the broker to be able to "find" them. I see...and what do you guys think of Interactive Brokers? I've heard they're good from other sources and I might change...aren't their commissions $1 in/ $1 out?

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hoodooman

Registered: Jun 2003
Posts: 4421

07-31-12 06:22 PM

FOR 100 SHARES

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dom993

Registered: Jul 2008
Posts: 534

07-31-12 06:34 PM

Quote from hoodooman:

FOR 100 SHARES

I haven't traded stocks at IB for over a year, but it used to be (per side) 50 cents per 100 shares with a minimum of $1 (of US stocks)

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