OTC stocks have higher bid ask, for example, 9.70 and 10. But IB market caps forbid buy a stock for more than 3% last price IB allow short sell, i sell 100 stocks for 8, but when try buy the stocks for 6 ib refuse my order because the current price is 5
If you short at 8, why would you buy at 6 when the price is 5? Am I missing some basic tenet of stock trading? I mean, you may have your reasons for wanting to cover at 6 when the last price is 5....Far be it from me to judge. I just do not understand why you would do it. Charity work?
is no so simple. otc stocks have large bid ask spreads than normal. sometimes i sell a stock for 9 and just can buy back for 8, not for 6. market caps make no sense for short sell if i will make an profit
Yeap and they get walked up or down $1-$2 on 100 shares, loved that game on stocks I understood. Use to trade with a former OTC MM, s he showed me why price is so distorted on OTC. E-Trade and Schwab will let you buy for $5 but doubt they will let you short.