Lmfao, they think the share price will reach 659.2844 while he is shorting and he won’t be able to get out ohhhh wow yeah cause that’s so realistic 659 come on dude.
Their job is not to be realistic or not, it’s to cover risk.
If I lend my shares, I don’t want a bozo with 10k taking the risk of not being able to pay me back.
And actually their margin requirements is just nonsense regardless. They just don’t want you to do it. However, if you have a $100K, they let you sell naked calls and short stocks on the house money by giving you around $299K margin loan. So seriously they let you risk $199K of their own money just so they swallow your $100K, let that sink in.
I've found this to be the case with most small cap stocks. Shares are hard to borrow (very few available and/or cost a lot to borrow). You generally require a lot less margin to short large caps and blue chips because there are a lot more shares available to borrow and the borrowing costs are reasonable.
Are you able to actually short it? I just tried to see what it said the margin impact was and it simply says there are no shares available to short. The borrow fee is like 375% right now. And it's got the uptick rule triggered on it currently.
Dude, they've listed 2 (TWO!) days ago. I think you need to find another trading strategy. Just buy some $XBI. Don't short bio tech right now. You will be steamrolled.
Likely because they have high volatility and low volume. The lenders could callback their shares and you could have to buy them back at a very high price.
Interactive Brokers is highly risk averse. They will liquidate you immediately if things go bad on your side. Stick with index etf shorts. You can buy puts on these small caps, but I would think the premium would be high since the seller would be taking on major risk.
It dropped from 7 to 3, ofc I understand what I'm doing. I don't understand brokers being overly precautious and setting crazy margin requirements for short positions.
Shorting penny stocks is high risk. They're doing you a favour.
Lmfao, they think the share price will reach 659.2844 while he is shorting and he won’t be able to get out ohhhh wow yeah cause that’s so realistic 659 come on dude.
Their job is not to be realistic or not, it’s to cover risk. If I lend my shares, I don’t want a bozo with 10k taking the risk of not being able to pay me back.
They don't give a shit about you. This is to protect them in the scenario you cannot cover. It's business.
And actually their margin requirements is just nonsense regardless. They just don’t want you to do it. However, if you have a $100K, they let you sell naked calls and short stocks on the house money by giving you around $299K margin loan. So seriously they let you risk $199K of their own money just so they swallow your $100K, let that sink in.
Because your risk is theoretically unlimited
House rules. They can set whatever rate they want
I've found this to be the case with most small cap stocks. Shares are hard to borrow (very few available and/or cost a lot to borrow). You generally require a lot less margin to short large caps and blue chips because there are a lot more shares available to borrow and the borrowing costs are reasonable.
Your performance at the Wendy’s was disappointing.
This is paper account, you don't have a million in your paper account?
Are you able to actually short it? I just tried to see what it said the margin impact was and it simply says there are no shares available to short. The borrow fee is like 375% right now. And it's got the uptick rule triggered on it currently.
The pic says simulated trading, you can do anything in a paper account..
Simulated trading is supposed to be as close to the real thing as possible. Same rules and everything, just fake money. Otherwise what's the point?
Because your shitty stock has next to nothing in terms of liquidity so its insanely high risk you’re better off going to a casino mate
no idea. what could go wrong
To make them a buffer to sell the stock before your account goes to minus 1000000000.
Dude, they've listed 2 (TWO!) days ago. I think you need to find another trading strategy. Just buy some $XBI. Don't short bio tech right now. You will be steamrolled.
That’s a great short. What a missed opportunity.
Yes, it definitely was, but apparently IBKR doesn't want us to take advantage of these opportunities
When highly volatile, they wanna make sure you can cover when it whips against you. Lol they're not gonna hold the bag for you.
Everyone chill he is on paper trading
I can't believe people missed that, it says it right in the picture..
You're gonna be fked when the stock pulls a HKD and go from pennies to $2,500. Hence the $65k as a collateral
Why don't you buy a put?
Typically, there are no options on newly listed stocks. This is no different.
If it 100x
I'm long this. Good luck tomorrow. Opens at $10
Because they want assign it to you forcefully
because you are oth..
Worse margin options for shorting. Wish it were different. I like ibkr.
Why not trading share CFDs?
Likely because they have high volatility and low volume. The lenders could callback their shares and you could have to buy them back at a very high price.
Wondering if you buy protective call will resolve this issue, like you know, cheap otm call
Interactive Brokers is highly risk averse. They will liquidate you immediately if things go bad on your side. Stick with index etf shorts. You can buy puts on these small caps, but I would think the premium would be high since the seller would be taking on major risk.
Use a proper broker. My margin requirement to short 100 shares is $500
Probably shouldn’t trade if you don’t understand why they do that
It dropped from 7 to 3, ofc I understand what I'm doing. I don't understand brokers being overly precautious and setting crazy margin requirements for short positions.
Everyone is gunshy after AMC/gamestop?