NO! There has to be closing transaction to record, the OTC Market absolute is .0001, there is nothing below that for market entry of an order.
You borrow at .0001 and then close at .0001 for what ... 0 gain, you are out interest and fees into the negative, and the ridiculous amount of Maintenance and Supplemental margin for the period of holding such a position that cannot be used for anything.
Think about that for a moment, what broker in the world is going to allow such a transaction?
There are none because it is not a trade.
Worse yet is the silly ideal that if a company goes BK that means the position is 100% and tax free. Bullshit! If the stock ceases trading while a short position is in place they are stuck like chuck as they have no means to close their position just as long position holders cannot liquidate theirs. They would have to wait for the courts to determine who gets any money left over to complete trades. Further there is nothing in the tax laws that EXEMPT capital gains for a short position into BK. It is a capital gain and it will be taxed appropriately.
Here is once again taking an Exchange related postion that is coveted and making it into something it is not. The reason such a trade is coveted is because of the following:
You short XXXX at $5 and lets say 3 days later it is announced that it is filing for BK. The stock drops nearly instantly on the announcement typically pennies. This is a guaranteed 99% gain for the trader, the "holy grail" of short positions because there is now absolutely NO RISK and 99% reward.
How this has morphed into leaving a position open into a non trading security and tax free is beyond me, much like Abusive NSS in the OTC, it is all imagination and nothing more.
AI
