Hello everyone , I have recently been forced to buy-in a short position because the broker (Interactive Brokers) couldn't borrow the shares before the short sale settlement (T+3). From IB's explanation on their website (http://ibkb.interactivebrokers.com/article/845) follows that a short position may be closed even after T+3 if the lender decides to recall the shares. I have two questions on the above: 1) From your experience, how often can I be forced to buy back the shares after short sale settlement? I consider holding short positions for 0.5 up to 2 months and trade optionable stocks with avg. day volume of around 1M and price > $7. 2) Let's say I do a short sale at 12PM and notice there are still shares available for short sale 20 minutes after (i.e., IB successfully locates shares available for short sale after my short sale was performed). Can I be sure at this point that my short sale trade will be settled at T+3? Thank you for your help!
abrakadar 17 "1) From your experience, how often can I be forced to buy back the shares after short sale settlement?" rarely. don't worry. even if you get a notice of a buy-in they usually find stock before the actual buy-in. which city are you trading from? regards, zdreg
Thank you for your help! Hope my experience will be just as positive I'm currently in Toronto. How about you?