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Re: zozo1 post# 75583

Monday, 09/01/2014 6:52:21 PM

Monday, September 01, 2014 6:52:21 PM

Post# of 220909
Big money? LOL. Let's look at am example shall we.

Someone decides to short a 1 cent stock. So they short 1 million shares. The MOST they can possibly make is 0.01-0.0001 or 0.0099 per share....or $9,900. That's it. Max.

In order to do that they have to put up $2,500,000 in margin capital to do so. TWO POINT FIVE MILLION DOLLARS. That is now at risk.

Who in their right mind would do that?

While this whole IB discussion is entertaining...it tends to be pushed from a position of ignorance of how it really works.

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