When will BIDU be shortable (IB)

Discussion in 'Retail Brokers' started by Babak, Aug 10, 2005.

  1. Babak

    Babak

    Any idea when/if IB will allow BIDU shorts? Thanks.
     
  2. 30 days newbie.
     
  3. Htrader

    Htrader Guest

    Given the small float and likely high demand, I don't think Ib will have it available until the float increases, that is whenever the first lockup period passes.
     
  4. SteveD

    SteveD

    It is probably shortable today at some BD. The BD just has to have some shares to loan you. That is all it takes. No 30 day rule. No lockup rule. No float rule.

    Just have actual possession of certificates that the BD can loan out to short sellers in a margin account.

    BIDU is probably setting up to be one hell of a "short squeeze", LOL.


    SteveD
     
  5. Babak

    Babak

    I'm hearing that it is horribly expensive to borrow (something like 50% pa rates). Sheesh.

    (newbie signing off ... lol)
     
  6. I put up a test short for 1 share at a broker to go unnamed, and it appeared to be accepted.
     
  7. BS. 'Sub $5 are not shortable' falls in the same category..
     
  8. Yes, I bet someone that if he gave me a penny for every dimwit that said that in a public forum, I'd own his house and car within a year.

    Leaky roof, and the tires were shot, but I made out.
     
  9. chud

    chud

    Anybody been able to short BIDU with IB? I hear it's shortable at Cybertrader.
     
  10. SteveD

    SteveD

    There is a rule against shorting stocks less than $5. It has to do with margin rules which, I think, say you cannot buy a stock for less than $5 on margin. And, you have to have a margin account to short stocks.

    BIDU was shortable from day one. You just had to find a owner of the shares that was willing to lend them to you for you to sell them "short".

    I find it quite amusing that 99% of the people on ET do not know what a "short" really is, LOL.

    SteveD
     
    #10     Sep 14, 2005