I'm paper trading some short sales of Nasdaq stocks that are pending delisting. PBCB has now been suspended. In my paper trading account, no price is quoted for today. If this were real life, what would now happen to me? Do these stocks to to OTC trading or something? If there is a place I can go to read/learn about this, please direct me. Thanks in advance.
I think I got caught in something like this where the ticker just stopped trading. I got credited for the last quote if I remember correctly.
I don't know how difficult any of them would be to borrow, but I suspect some of them are. I don't know if there's a way to "paper borrow" things but it's an interesting question. I'm just doing this in a spreadsheet right now. My experience with using an IB fake account in the past was that the prices were not that realistic. I think you need to commit a bit of real money to test that part. Right now I'm just trying to see which strategies might be profitable.
I'm not sure of an answer for you but I see your paper trading. I would not short a stock that is about to get de listed. I'm assuming it's a small cap if it's getting delisted, this is just a recipe for disaster. Look up KBIO recently and see what can happen. This stock was practically bankrupt, wasn't moving really, think it was in warnings from Nasdaq for failing to give a quarterly report. Their was a guy you could find easily now who made a fund me page. Anyways, he shorter the stock at like 3$ or so with 35k buying power. Martin shrekell ( probably seen him in news for some other fraud charges) announced he is buying KBIO and I believe himself and some other people bought like 70 percent of the float and caused a short squeeze. The stock gapped to like 15$ overnight and rallied almost to 30$ in a week before Martin was arrested and the stock halted. At any rate the guy who was short woke up to a margin call basically with a bill for 100k from his broker. The float on those stocks are just so small and any type of buyout or news (especially small cap biotechs) can send prices soaring. That was a vague description of the story but just a heads up. Guessing your newer since your paper trading. I would not put myself in that type of risk. Theirs way better trade setups with better risk scenarios.