SEC Fines? Short Sales?

Discussion in 'Professional Trading' started by Johnny Walker, Jan 6, 2006.

  1. "Got my first Fine from the SEC. Did an Illegal short sale. I didn't know i did it but they fined me $25 dollars plus my profits on the stock which was $35. I think, besides opening orders, i should stay away from short sales from now on. They cost more because they are billable orders and now i get greif from this. Im sure i still had to pay the commission of 2 cents to my broker (buy and sell) and the 1 cent to the specialist plus another 80 cents for SEC fees and out $76 if monday wasnt bad enough."

    I read this quote on some ones trading journal and would appreciate it if some one could explain to how to do a shortsale without getting fined? (Nasdaq and NYSE) I have a basic scottrade retail account and usually just stick to trading hard commodities.

    Thank You, in advance for the replies!
  2. #1) quit using scottrade.... wtf? you're the second person in as many days who said they used this still - ack!

    #2) What stock and ECN were you on? (if you can choose an ECN, that is)
  3. NKNY


    Interesting... I would think scottrade would get fined for allowing the trade.

  4. I dont think I can choose an ECN, I have never seen the option to choose this. I was planning on shorting MSFT. I only trade stocks once every couple months. Commodities are my main trading tool.
  5. well, like I said, get out of scottrade

    I just started shorting limits on arca on downticks today actually. The word is around ET is that you can do so on arca w/ no probs. So far so good.

    I'm going to bed - only 6.75 hrs to opening bell ack!
  6. Hamlet


    The SEC did not impose that fine on the trader, it was the brokerage that did it to cover their own hide.
  7. NKNY


    Scottrade should have systems in place to prevent illegal short sales. I would ask for reimbursement or move to another broker..

  8. I'm confused, what were the specifics of the illegal trade.