short selling stocks

[NoDoji]

Quote from bigitop:

How can day-traders even consider short selling as a feasable strategy if they are so limited by their brokers shortable list?

I make a living entirely by shorting. There are a small number of stocks that my broker (Etrade) doesn't always have available to short and in those cases I have my husband short them thru IB.

 

[johnczuck]

To All - If you only could choose one broker to process short trades who would you choose?

 

[gkishot]

The interest rate to borrow stocks like ebay and goog for shorting them jumped 1% overnight at IB from almost 0% to more than 1%. Does anyone have a possible explanation of why it happened?

 

[spindr0]

Quote from Big Game Hunter:

OK then explain this to me. Why does IB need to locate the shares to allow you to short a stock when they are really only supposed to be a trade FACILITATOR. What I mean is that if theres 700 shares sitting there on the bid and I want to execute a short against them then why do they need to locate them?

Whoever is SITTING THERE ON THE BID is who has the shares I wish to short. IB doesnt need to locate them. They are clearly being offered for sale by someone in the ether. There is simply no way you can then turn around and say ... Oh well sure there 700 shares being offered but you cant have them because technically they dont exist... Now you tell me the flaw in my thinking.

The bid is the highest offer to buy shares. He doesn't have the shares. He wants the shares. In order to sell short to him, you need to borrow the shares. It's illegal to do so unless you borrow the shares (naked shorting).