OP I thought about my reply to Murray, and I want to sate/ restate something for the record (for some reason this oneâs bugging me) So to be perfectly clearâ¦.. Me responding to Murray the way I did â was NOT meant to appear like I was confirming anything with him⦠He already knew EXACTLY what I was saying in my original postâ¦, just like every other experienced trader who's read it knew⦠I confirmed his comment to give you food for thought Sir Iâm now out of this one Take Care Redneck
user, when the SEC banned naked shorting they made it so that you must deliver the shares on T+4. I assume that these brokers are allowing you to short for three d ays hoping that you would either close the position by then or that they will find shares to borrow by then. Something about this still seems wrong though. Normal equities settle T+3 whether or not you are long or short. its just standard settlement process.
I short SSO regularly. I like shorting it better than buying SDS because the shares are currently cheaper, and it seems a little less "whippy". I trade with Fidelity ($6.99 per trade if you ask for a deal or threaten to leave) and they usually have shares available. When they don't have shares available I call their active trader services and they usually can get more shares loaded into the system for no charge. A couple times I was told that they could get more share but I'd have to pay. I just passed and shorted something else instead. I try not to hold positions overnight and have never been "called away" when I did. More often than not holding positions overnight doesn't work out for me. I've only been trading since 10/08, so maybe I'll eventually get better at swing trades. When Fidelity doesn't have shares of SSO readily available I suspect a shrewd swing trader is milking the downtrend for all it's worth with a large position. Good Luck
I have swing traded FAZ and FAS and the profits were insane. A few days only since the profits are so huge if you're on the right side of the trade - don't be too greedy, right? The fee to borrow from my prop firm was really small - 50 cents per 100 shares. Never a problem borrowing since my prop firm has great access to hard to borrow stocks/ETFs. My prop firm also teaches me the tricks to trading these fast ETFs so my mentoring is really helping me out. The advantage that I had was I always have my mentor review the strength of any swing trading positions to make sure that I am on the right side of the trend. You can't get this service at traditional online brokers but since I'm trading with a prop firm, it is very different. Have fun with the 3-beta ETFs. Can't wait for the quad-beta ETFs. G/L!
I shorted the hell out of FAZ on Tuesday, from $79 to $60. I knew i should have held on for a few days (i sold on tuesday) but nevertheless it was a great trade. Anytime the 3X short ETF's spike short the life out of them
To those of you who are able to short the direxionfunds 3x etfs, could I have a tip on which brokers can get the shares? No luck with Nobletrading, where I currently trade. Thanks everyone.