Of course he knows - this security can't be in 2 accounts at the same time. This other customer is most likely other security broker, not a retail customer. Otherwise it would be stealing not borrowing.
Yes, I also thought that I'd have to pay interest at first, but apparently I don't . My email: To: Scottrade Customer Support Subject: Trading Say I want to short $1000 worth of stocks. I short them and get $1000 (minus the $7 comission) in my account from the proceeds. Until I buy to cover the shorts, do you charge me any interest on that $1000 I have in my account? Their Reply: Dear Investor, Thank you for your email. Scottrade does not charge interest on shorted stock positions. The execution will have the $7.00 commission. Please let us know if you have any further questions regarding your account. You may obtain the telephone number of your local Scottrade branch office through our home page in the Branch Locator - http://www.scottrade.com/frame_branchlocator.asp. Please contact us again if there are any other matters with which you require assistance. Cordially, Jon M. Scottrade Inc. www.scottrade.com Scottrade has been named Highest in Investor Satisfaction With Online Trading Services Six Times in a Row by J.D. Power and Associates. For award information, visit www.jdpower.com .
Probably because that $7 is way more than the interest would have cost you Need a good direct access broker..
Not true at all. Defining a tradeable pair as having a historical corelation of 0.9 or 0.8 minimum... there are 100s out there. One has to know where and how to look. FDX vs UPS depends on the corelation... but it would be a relatively weak pair. Too many external variables impacting the prices. Also... the historical ratio to which the pair reverts is a moving target. It changes daily. In theory, he pair could eventually revert to mean... and you could still lose money on the hedge. rm+