Stock Short Selling Order Execution

Discussion in 'Order Execution' started by chuzek, Aug 30, 2010.

  1. chuzek

    chuzek

    I'm new to short selling stocks and wanted to know some of the technical order execution concerns people have faced. I understand the fundamental concerns of short selling (i.e., unlimited losses, etc).

    Some questions I have are:
    - Have you had issues with a brokerage having enough shares to borrow?
    - What quantity of shares do you have to be ordering for availability to become an issue?
    - Are you able to borrow the shares at the stated bid price?
    - Is order execution time significantly longer when shorting a stock compared to selling a long position?
    - Do you find some brokerages significantly better than others?
    - I'm developing an algorithmic trading script that short sells. When comparing back testing and paper trading results to actual execution, what additional discrepancies beyond what one finds with long positions should I expect?

    Thanks in advance!