short selling a stock then it splits

T

TKOtrader

anyone know what happens if you short a stock for the longer term (position/swing trade) and then it splits ?

just wondering cause i noticed EXPE just split

thanx
 
should automatically be handled and adjusted by the operation folks with your broker.

i think it could take 1 or maybe even 2 whole business days after the effective trading date. Generally speaking, a full service retail broker who is usually one day behind in your account info will take longer than a direct access cyber like broker.....
 
Hi,

It's becomes the same result as if you were long the shares, & is effective the day after the split date. Your acct. will reflect the split shares in whatever increment they're split, with price adjusted accordingly. 2 for 1, 2x as many, & 1/2 the cost, 3 for 2 = 1.5x as many, & 2/3s the cost, etc.


Been the recipient of many of these, so I'm speaking from experience, from the long & short side.

Good Luck with Your Trade!
God Bless & GFtY! Kelly
 
so its basically the same as being long. so if it is split 2 to 1, i now am short double the amount before the split



THANKS FOR THE FEEDBACK FELLAS !
 
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