Shorting an 8 cent stock is fine if you believe its a fake company or have another reason to think its going down significantly but let me explain this one last time.
Some MM's Trade all day in their HOUSE ACCT and SETTLE with client accts at the end of the day usually w/in 90 seconds of close if not earlier in the day.
Example: I have 500,000 shares to sell of GBHD and the MM is VNDM, I say sell 200,000 sh Limit .09. The TRADER then will trade in the HOUSE account for any/all of my sells in a given day. So if he sells 50,000 what happens is he short sells the stock, then say he sells another 50,000, he short sells that as well. Then at the end of the day he SETTLES THE TRADE between the House acct (100,000 shares short) with my acct 500,000 shares Long. Trade is settled, I'm left with 400k and there is NO SHORT POSITION AT THE END OF THE DAY.
Daily Short Volume is a temporary short sale to help keep orderly markets and make it easier for the MM/Traders.
So thats why there are no FTD's on the stock because there are no OUTSTANDING SHORT POSITIONS.
So when someone quotes the Daily Short Volume and implies that this is a SHORT position in the stock that is a false statement.
The Daily Short Volume just means that thats how much was shorted in MM's House accts during the day, which all settles w/in 90 seconds of close or sooner in most cases. Its a REAL SELLER. Thats why the Daily Short Volume was 98% because practically ALL the trades were Sells to Buyers at .09 from the 200k seller. All but 1,502 sh of the 95,510 volume for the day was same MM at .09 hence the 98% Daily Short Volume.
Feel free to ask questions if its not clear yet.
