Discussion in 'Stocks' started by sevenlaws, Jan 6, 2011.

  1. I have read a lot of things at the SEC website and i am wondering if anyone knows if there are selling limits. how low can a stock be in order to short it?? i know about borrowing shares, settlement and all of that but are there other limits that i havent seen yet. i have never shorted a OTC and need the advice of someone that has done it many times. thank you.
  2. rosy2


    can you be clearer? what does shorting an OTC mean?
  3. Short Selling.
  4. rosy2


    does "Otc" mean over the counter market? do you mean where you have to call a counterparty to trade (bilateral); not exchange traded?
  5. yes thats right. (over the counter)
  6. from what i understand is that you have to borrow shares to short sell and it's a T3. so what i am wondering is if i cand buy back before settlement or do i have to wait. also if there is a limit or limits on how low a OTC can be be fore you cant short sell. ive read 5cents to 5$ its not very clear. i know IB has a limit of 5 dollars but does this apply to everyone or does the brokers decide.