Otc

S

sevenlaws

I have read a lot of things at the SEC website and i am wondering if anyone knows if there are selling limits. how low can a stock be in order to short it?? i know about borrowing shares, settlement and all of that but are there other limits that i havent seen yet. i have never shorted a OTC and need the advice of someone that has done it many times. thank you.
 
does "Otc" mean over the counter market? do you mean where you have to call a counterparty to trade (bilateral); not exchange traded?
 
from what i understand is that you have to borrow shares to short sell and it's a T3. so what i am wondering is if i cand buy back before settlement or do i have to wait. also if there is a limit or limits on how low a OTC can be be fore you cant short sell. ive read 5cents to 5$ its not very clear. i know IB has a limit of 5 dollars but does this apply to everyone or does the brokers decide.
 
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