Aurora Acquisition Corp (AURC)

[tr8dervic]

Dodge ball.

When I was an MM did I naked short stocks?

Yes.

When in the heat of trading 20 different stocks and handling millions of shares of order flow, it was quite common to short against the order flow without giving a lot of thought to it.

But, and this is important to understand, the firm who is backing your action will approach you with a BUY-IN notice if shares cannot be found to cover your short.

They typically give you 1 to 2 weeks to cover or have a FORCED buy-in.

That's right, they go in the open market and buy in your uncovered short and charge it to your account.

It happened to me on numerous occasions. I ALWAYS bought it in myself to avoid getting crucified by them. Sometimes with a 1 day or same day (cash) settlement.

Bottom line...the naked shorts have to cover at some point. That I can guarantee you. No firm is going to risk scandal and BK by NOT covering at crunch time.

Thus the game of "dodge-ball".