How to setup ability to short?

Discussion in 'Retail Brokers' started by lrf3, May 23, 2010.

  1. lrf3


    I was wondering - how can I setup the ability to short with a retail firm? I was able to setup a margin account so that I don't have to wait 3 days for an order to settle. But when I attempted to short I was blocked. The retail brokerage firm asked me for my employment and income information before they could approve me for short selling. Problem is that I am not currently working and I would like to daytrade. My wife works but I'm currently using an account that is only in my name. What can I do? I have like low 7 digits net worth and only risking 200,000 right now. How can I get approved for short selling?
  2. Ask your broker? :confused:

    If they refuse to give you an answer, either they suck as a broker or you are leaving a big part of the story out. Brokers are a highly competitive industry. Send a few emails, I'd start with the sponsors of this board.
  3. Retief


    Why don't you just buy inverse ETFs if you want to make money on the downside? Shorting sucks. The brokers screw you on margin interest, sometimes you can't get a borrow, sometimes you can get a borrow and the stock is called back, and sometimes the stock gets bought out by a bigger player. Save yourself some grief and look into inverse ETFs.
  4. Bob111


    don't know who your broker is,but if you can't short with 7 fig in assets and 200K on account ...i would close my account right away.
    i have no such problem in IB with much less income and assets. i'm also unemployed