Max $ while shorting stocks? Kicked out from a short position

[xicaob]

Hi!

Theres any limits on the numbers of stocks shorted or amount invested?

Several months ago, I shorted 1357 (JPY - NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund) stock but they didn´t let me buy more than 500 shares.

After several weeks, and while earning with this short positions, the stock was unavailable and IB refunded my money. The company is still in business but I dont know what happened. How is this possible?

Last week, around 20% of my positions got closed because stop loss were triggered. If the market continues to go down, I think I will short stocks for making a profit. Have experience only in bullish markets.

Thanks for the time and help!

 

[guru]

Max $amount you can short depends on your cash, available buying power/margin, and the margin required to short the specific stock. But assuming you have sufficient cash, most of the time you may not be able to short more shares than you’re able to borrow. Shorting non-existing shares is prohibited, so IB finds someone who has the shares and will allow you to borrow them for shorting. Some stocks have very small number of shares available to borrow, and this may also fluctuate with time. Sometimes there may be too many people wanting to borrow a stock while there may not be enough people wanting to lend it.
You also need to pay daily %interest to people who lend your their shares.
See:
https://www1.interactivebrokers.com/en/index.php?f=14527

https://www1.interactivebrokers.com/en/?f=/en/trading/ViewShortableStocks.php?cntry=usa&a

 

[zdreg]

Several months ago, I shorted 1357 (JPY - NEXT FUNDS Nikkei 225 Double Inverse Index Exchange Traded Fund) stock but they didn´t let me buy more than 500 shares.

"buy" didn't you mean to short more than 500 shares?

 

[xicaob]

"buy" didn't you mean to short more than 500 shares?

Yes, I used the wrong word. Not buying anything when Im selling (going short)

Max $amount you can short depends on your cash, available buying power/margin, and the margin required to short the specific stock. But assuming you have sufficient cash, most of the time you may not be able to short more shares than you’re able to borrow. Shorting non-existing shares is prohibited, so IB finds someone who has the shares and will allow you to borrow them for shorting. Some stocks have very small number of shares available to borrow, and this may also fluctuate with time. Sometimes there may be too many people wanting to borrow a stock while there may not be enough people wanting to lend it.
You also need to pay daily %interest to people who lend your their shares.
See:
https://www1.interactivebrokers.com/en/index.php?f=14527

https://www1.interactivebrokers.com/en/?f=/en/trading/ViewShortableStocks.php?cntry=usa&a

Thanks, man. You saved me!

 

[xicaob]

Yes, I used the wrong word. Not buying anything when Im selling (going short)



Thanks, man. You saved me!

Guru, I just logged in in IB TWS looking for the Short Stock Availability Tool and cant find it. Saw a bunch of videos on YT and couldnt find anything to make it work. When I select a stock for seeing if its shortable (and it must appear a green or red light in the Order Entry window) neither appears anything and I dont know If I touched anything or what, that I doesnt appear anymore.

 

[guru]

Go to "New Window" -> "More Advanced Tools" -> "SLB Rates". You should then see a window like this:

 

[xicaob]

I did it but when it must to appear the quantity available for purchase it appears as unknown. I tried with 7 different tickers.



Im looking for this tool named "short stock availabilty" but cant access to it. I would love to have the possibility to have a list sorted with these stocks availability by Fee rate/Qty available and others parameters that I fing useful for my kind of operative.

By you guys know any content that I could adquire specialized in the topic of shorting stocks? I would love to be able to trade whether the market is bullish o bearish.

By the way, speaking about this kind of operative, when I borrow stock and the apply me fee, this fee is fixed in time or can fluctuate? If when I borrow them by paying 2% (I suppose its per year) and then they start to borrow them for 2,34%, the will apply this new rate from that day on?

Cheers

 

[guru]

Works for me, so contact IB support and report the issue.

 

[guru]

By you guys know any content that I could adquire specialized in the topic of shorting stocks? I would love to be able to trade whether the market is bullish o bearish.

I short a lot of stocks, but it can be dangerous, with losses larger than 100%. I just do a lot of small short trades.

By the way, speaking about this kind of operative, when I borrow stock and the apply me fee, this fee is fixed in time or can fluctuate? If when I borrow them by paying 2% (I suppose its per year) and then they start to borrow them for 2,34%, the will apply this new rate from that day on?

Yes, your own graph that you posted above shows "Historical Rates".
The rate is annual, but can be different every day.

Im looking for this tool named "short stock availabilty"

I'm not looking for it. I just try to short the stock that I want to short, and when it is available then the trade will go through. Sometimes it will go through an hour later, at a better/higher price.