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Thursday, June 19, 2014 11:20:45 PM
That short report only logs Market Marker naked shorts that are required to create an orderly market with uninterrupted liquidity. No one retail is shorting a sub-penny.
To begin with only 2 brokerages I know of allow shorting pennies & each require a "Portfolio Margin" account with a minimum $100K balance.
In addition, in order to short a penny stock the broker requires $2.50 PER SHARE as collateral.
This means one would need to put up like $5 million in an attempt to make $5k, all the while risking unlimited losses. No one on their right mind would do that.
To begin with only 2 brokerages I know of allow shorting pennies & each require a "Portfolio Margin" account with a minimum $100K balance.
In addition, in order to short a penny stock the broker requires $2.50 PER SHARE as collateral.
This means one would need to put up like $5 million in an attempt to make $5k, all the while risking unlimited losses. No one on their right mind would do that.
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