I get frustrated when stocks like ADSX go up 100% plus in less than a week but are on the UPC 11830 list and are therefore unavailable to short at a retail broker. However, I am wondering - are traders at prof. firms allowed to short stocks that are on the UPC 11830 list? For instance, INVN is now on the UPC 11830 list, but could provide a good shorting opportunity in the next few days.
I remember how nobody last year could short KKD soon after that donut company became a NYSE stock instead of a NASDAQ. It was on the impossible to short list. I got a signal in one of my systems to short it. Pulled it up on my level 2 order entry and got bullets for 2000 shares, hit the sell key no problem. A few seconds later decided I wanted even more and hit the short key to add to my position. I trade A LOT of different stocks. I have yet to ever hear of something I can't short at ECHO, this includes stocks under $5. Robert Tharp
Thanks for the reply Robert. Would you be able to explain how the bullet for shorting 2000 KKD worked? How is that different to shorting at a retail broker where you borrow the stock then sell it?
RTharp,how do you short a stock at Echo that is under $5,therefore not marginable? And if this stock has no options on it,how would you get a bullet?
Bullet firms write thier own 1 day option contracts on stocks if I want one they create it. How do I short a stock under $5..... easily hit the short key. Margin rules apply to Regulation T. Professional's aren't held to that rule. One of the reasons ECHOtrade has a $10,000 minimum instead of $25,000. Robert
I hit Control B on my keyboard which is a hot key for loading bullets software onto my screen and logging in. This takes about 5 seconds. I than type 2000 KKD . it goes working....about a second later says filled. I immeadiatly hit my level 2 sales window to sell 2000 at the bid. On bullets I don't need upticks. It allows me to push down stocks that are about to fall. Run a search on this site for bullets/conversions as the topic has been covered pretty heavily. Robert Tharp
Robert,are you guys able to short ANY Nasdaq small cap stock,even ones that are like 50 cents?By the way,Nasdaq small cap stocks are not subject to the short sale rule like the Nasdaq NMS stocks,hence no need for bullets.
I have yet to be told I am not able to short a stock. I'm not a NASDAQ trader (90% NYSE transactions) so I can' really say on that. Robert
Rob,one last question:if a stock is on the impossible to short list,instead of using a bullet,can you guys just short it on a plus tick?
This depends on if the clearing firm can get stock. I have yet to be told stock in unavailable and I short/bullet a lot of stocks. Robert