can you short stocks under $5?

[thetraderprofit]

I believe the rule is that stocks under $5 are not marginable if you are going to short them. So, I believe this has to be done in a cash account.

 

[Corso482]

Originally posted by thetraderprofit
I believe the rule is that stocks under $5 are not marginable if you are going to short them. So, I believe this has to be done in a cash account.

How can you short a stock in a cash account? I thought you had to short in a margin account because of the mechanics of going short.

 

[Tech Analysis]

IB lets you short them just with higher margin reqt's, if any.

 

[limitdown]

the real question is:
why would you want to chase the runner, after he's safe at base?

the $5 low water mark was supposed to be a safe haven for stocks in free fall. chasing a stock lower is like dating your girlfriends kid sister. Can't you wait until they grow up again?

(uh, guys, don't make fun on the illustration)

 

[Corso482]

Originally posted by limitdown
chasing a stock lower is like dating your girlfriends kid sister. Can't you wait until they grow up again?

lol, what the hell are you talking about?

 

[limitdown]

Originally posted by Corso482


lol, what the hell are you talking about?

Originally posted by Gordon Gekko
is it possible to short stocks under $5? i've heard you can't and i've heard you can.

 

[Tech Analysis]

Yeah but who could resist the urge to short 1,000 shares of WCOM for $5,000 then buy it back for all of $90?

 

[mercedes500]

It depends on your broker. Beware of short squeeze though. It just needs one good news to make it fly, at least temporarily.

 

[limitdown]

Originally posted by Tech Analysis
Yeah but who could resist the urge to short 1,000 shares of WCOM for $5,000 then buy it back for all of $90?

I hope you actually did that because I got caught with the short squeeze

good for you,

treating to lunch?

 

[TorontoTrader2]

4 year BUMMMMMP!!

In Canada you can short stocks even US stocks down to $2 in price.