IB available shorts

Discussion in 'Interactive Brokers' started by roger2, Jul 8, 2001.

  1. "I have also noticed a pattern, i.e. often stocks are not available to short when you would like to do so, then they BECOME available later."

    I have noticed this also. It seems to be more difficult to find shorts when shorting is what many traders want to do. I wonder if, when traders move significantly to the short side en masse, IB makes the opening of further short positions difficult or impossible as part of a risk minimization strategy for the company.

    On long side trades they have the stock as security for a violent change in the market, but on the short side, they are bound to replace the borrowed stock and are entirely dependent on the traders to ante up real money to meet margin calls in the event of a runaway to the upside.

    OTOH it could just be that when shorting is very popular the inventory of stock available to short gets depleted very quickly.
    #21     Sep 3, 2001
  2. def

    def Sponsor

    dufferdan, more likely the last of your scenerios. the internal risk management system which will automatically liquidate a position if margin is violated protects the firm.

    I mentioned this months ago. I spoke to the treasurer who said if there is a stock on the list and you find it unshortable, let us know (send me an e-mail or one to the help desk) and I'll track down with the stock loan department the situation. Perhaps the files are not being synched properly. What I need are details so we can track things.
    #22     Sep 3, 2001
  3. vitajex


    Since IB only has shorts on the most popular
    stocks, you often miss out on opportunities like
    the recent security/anti-bioterrorism high flyers.
    IB doesn't have VISG or CPHD, though they do have

    #23     Oct 10, 2001
  4. They have shorts on quite a few obscure stocks as well, but there aren't as many as I'd like. Also, many stocks are on the restricted list, and almost no one will let you short them.
    #24     Oct 10, 2001
  5. Babak


    IB doesn't have the following I'd like to short:


    They do have the following to their credit:

    2 out of 9?!? c'mon guys you can do better!

    I'm sure those 7 will be miraculously 'available' once they are a fraction of their present price, that has been the frustrating pattern in the past.

    #25     Oct 11, 2001
  6. ddefina


    I sold short MSCC via IB yesterday (October 17th, 2001), but covered the same day. I tried to short again today and it's not available at IB? It's in a perfect position to short and its not available now?

    Why can't IB post the actual shares available to short like Cyber does, and why can't they get better sources to borrow stock from? I'm not complaining too much, just wishing for a perfect world.
    #26     Oct 18, 2001
  7. ktm


    I've been waiting for AMZN to be shortable at IB for a while. It seems that everyone else is shorting it. I wish I could. I've never seen such a scary balance sheet.
    #27     Dec 31, 2001
  8. agent99


    Wow...I've never ever had a problem shorting AMZN at IB, and I do it regularly.

    #28     Dec 31, 2001
  9. ktm


    When was the last time you shorted them at IB? AMZN is not on the shortable stocks list now nor can I enter a short order.

    Here's an interesting question...What if I sold calls (naked) and then got exercised and the stock wasn't shortable - as in the case of AMZN? I have never tried this, but it does seem like a way to establish a short position.
    #29     Jan 1, 2002
  10. in this case you will get a "buy in", ib will purchase the stock for you in the open market to fulfill its settlement obligations
    #30     Jan 2, 2002