Forgot to mention an important part of being bought in this way (if you don't already know this) -> If you cover for regular settlement after the notice is sent to you, you are still subject to buyin as your shares will not be delivered in time. This could cause you to wind up long at a horrible price (when you probably thought you were flat). Make sure to talk with your brokerage before you cover for yourself. This unfortunately is the trader's, not the brokerage's, problem/fault - you need to know the mechanics of the market you're trading in.
what is the point of covering your position if u are not making timely delivery? please explain further. if IB says u have to cover they would tell you that it cannot be bought for regular settlement but must be bought for cash settlement.. u are worrying people with no basis.
LOL that guy shorted a microcap with a market cap of 100m, then it gets called in and then whines how he will lose money? This has NOTHING to do with naked shorting. IB borrowed that stock and then it got called away. Plain and simple. The smaller the capitalization of the stock the more likely it will get called sooner rather than later. At times I get dozens of short positions bought back, it happens all the time. Sometimes partially, sometimes the entire position. Sometimes I get the notification that it MIGHT get bought back and then nothing happens as they were able to locate shares until 16:00. It's just part of the game. P.S. If you read through the chat transcript: That guy is exactly one of those dumbass "traders" whining about bad IB customer service when in fact he is the one to blame. He doesn't know what he's doing, he has to close a short position in a very obscure micro cap name and now he blames IB for his loss. Typical.
Iâve never been a big advocate of shorting. The game is rigged 90% of the time to the upside. These big corrections are engineered by the Fed and Goldman to create trading revenue. Rowing the economy itâs been happening for 100 years.
How do you know they didn't? Post proof or at least a tiny hint they engaged in naked shorting otherwise your thread title is COMPLETELY misleading.
how do you know it did not get called away? You are the biggest ass wipe. No idea what axe you have to grind with GS. Every second post you make is against GS. The previous posts make it clear. That loser a) thought a paper loss is not a real loss which is as wrong as it gets (he would not have lost a penny would he have had stops in place) b) did not understand the lightest about stock lending. I dont know IB acted 100% ok but in the link you posted there is not the slightest, repeat, not the slightest suggestion that IB acted incorrectly. Fact is at any time your short position can be called away, period!!! And I find it pretty unprofessional of that poster to erase his own name but leave the names of the IB guys in there.