Illegal Short Sale Debacle - HELP!!
- Thread starter Marc to Market
- Start date
Quote from Marc to Market:
Thanks for the suggestions guys, but:
a) I don't have enough money in my account to go long 15k shares post-split.
b) Let's say I go long 15k shares to hedge the illegal short. If the stock tanks, I will lose money on the new long position but won't be able to profit on the short since it was illegal...
My broker is closed until Monday.
Are you over-leveraged? Being able to cover margins doesn't always mean you properly leveraging your account. Aside from that, my best advice is to cover ASAP. Your risk/reward ratio on this trade is extremly unfavorable. You must live to trade another day if you ever plan to make it.
Quote from Marc to Market:
After talking to the "trading room" manager at my firm today, I was able to cover my ICGE position (now ICGED) at between $4.35 and $4.40. At first, they wanted to take the profits, but I told them that by law there was nothing illegal about it since there is no uptick rule for small caps. They said they'd "investigate" and get back to me. Well, about an hour later they called me to tell me that I was in fact correct and that the profits were all mine.
Thanks everyone for your help!!!
congrats on covering for profit...
do you think you should split any profits with MACD_addy.....and give Baron a cut for starting et.com where you can get such valuable advice for free!??!
Just think what a securities lawyer would have charged for that same info! :eek: :eek:
jmho
IcE
I read the thread quite well thank you. My input was based on experience and personal opinion. Just like a trade, you never know who will be right, but I prefer to cut my losses.
Based on the rules I've traded successfully, I would fade Turoks trades without question!!!
something simliar happened to me before in the bubble days w/etrade
their trader confirmation was soo slow that i pushed in two sell orders for UBID. i did not have a margain account. the broker called and said i violated something or another, and they are going to purchase the shares back. i was like okay, and it wasn't your software that caused it? the person hung up. but next day UBID went up 10% when the stock was repurchased. i lost big on that transaction.
bastards.
their trader confirmation was soo slow that i pushed in two sell orders for UBID. i did not have a margain account. the broker called and said i violated something or another, and they are going to purchase the shares back. i was like okay, and it wasn't your software that caused it? the person hung up. but next day UBID went up 10% when the stock was repurchased. i lost big on that transaction.
bastards.
I heard lots of confusion about the short sale rule here. I thought I knew the rule but this thread has given me second thoughts.
Maybe some of the really knowledgeable people that contributed here might just sum it up giving examples.
The SEC spells out the rules but does not really address real life questions such as those posed here.
For example, the difference between NYSE and Nasdaq wrt offering a stock short, limit "marked short" below the current best bid. My understanding has been (I use Redi+) that for NYSE this is ok.
Also I have assumed that stocks designated HB were fair game to offer short so long as your broker can locate the stock. I find that even if the stock is HB, they seem to be able to locate it sometimes, and sometimes not. I simply offer it and find out. your help is appreciated.
Maybe some of the really knowledgeable people that contributed here might just sum it up giving examples.
The SEC spells out the rules but does not really address real life questions such as those posed here.
For example, the difference between NYSE and Nasdaq wrt offering a stock short, limit "marked short" below the current best bid. My understanding has been (I use Redi+) that for NYSE this is ok.
Also I have assumed that stocks designated HB were fair game to offer short so long as your broker can locate the stock. I find that even if the stock is HB, they seem to be able to locate it sometimes, and sometimes not. I simply offer it and find out. your help is appreciated.
