Shorting stocks under $5

Discussion in 'Retail Brokers' started by Htrader, Feb 10, 2001.

  1. mjt

    mjt

    I think they do have a short list somewhere. I can't remember where it is; but I think def mentioned something about that on a different thread.
     
    #11     Feb 12, 2001
  2. BSAM

    BSAM

    The list of stocks to short is found on the IB website. Click on "products" on the left side of the page. Then scroll down toward the end and click on "U.S. equities that are available to borrow."

    BSAM
     
    #12     Feb 12, 2001
  3. def

    def

  4. I have heard that bullets have been used to short stocks at or below $5. Unless you personally are an LLC member, and have asked your Branch Manager or Compliance officer regarding the $5 near sacrosacnt rule, you simply can't do it.

    So there lies the complication and conflict. My best advise is to verify and trust nothing you can't point to chapter and verse in the Rule Book.
     
    #14     Oct 31, 2001
  5. Total BS about shorting under $5. The rule is it must be done in a margin account, but is not a marginable trade.

    If the stock is borrowable, and the broker isn't a dweeb, then no problem.
     
    #15     Oct 31, 2001