Stopping shorts from borrowing your shares

Discussion in 'Trading' started by Option Trader, Jun 26, 2008.

  1. Can anyone confirm that the following statement is true:

    "For those buying on margin, entering a limit sale for say $60/shr prevents the shares from being lent to shorts. Keeping them in a cash account also prevents them from being lent out but prevents you from margin borrowing."

    I'm mostly interested in the first statement I am quoting. Thanks.
  2. The first part of the statement is untrue, the second is true. If you to do not margin your securities, then they cannot be lent out. But that obviously affects your buying power. Why do you care if "your" securities are lent out? Your securities are in street name and the whole arrangement is done for the simplicity of delivery and bookeeping. If you are attempting to keep shorts from pummeling a stock you own-- good luck. Securities lending is a huge business and if they don't use your shares they will get someone elses. Otherwise its a non-factor and has no bearing on your ability to buy or sell.
  3. x2012


    And what may I ask, is it that you have against shorts?

    (Plus what hilo said....)
  4. I love the shorts (if not for the abuses against inexperienced traders)--just wait for them to bring the price to below rock bottom prices, buy, then wait a bit. Just hoping to speed up the process though.