can you short stocks under $5?

I believe the rule is that stocks under $5 are not marginable if you are going to short them. So, I believe this has to be done in a cash account.

 

How can you short a stock in a cash account? I thought you had to short in a margin account because of the mechanics of going short.

 

IB lets you short them just with higher margin reqt's, if any.

 

the real question is:
why would you want to chase the runner, after he's safe at base?

the $5 low water mark was supposed to be a safe haven for stocks in free fall. chasing a stock lower is like dating your girlfriends kid sister. Can't you wait until they grow up again?

(uh, guys, don't make fun on the illustration)

 

lol, what the hell are you talking about?

 

Yeah but who could resist the urge to short 1,000 shares of WCOM for $5,000 then buy it back for all of $90?

 

It depends on your broker. Beware of short squeeze though. It just needs one good news to make it fly, at least temporarily.

 

I hope you actually did that because I got caught with the short squeeze

good for you,

treating to lunch?

 

4 year BUMMMMMP!!

In Canada you can short stocks even US stocks down to $2 in price.