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Re: Magnum7419 post# 11116

Saturday, 12/20/2014 3:13:48 AM

Saturday, December 20, 2014 3:13:48 AM

Post# of 27076
A quick little Google search just for you:

"Brokers require investors to put up collateral to guarantee against potential losses in the form of margin requirements. Often times, brokers will require OTC investors to have $2.50 of margin per share to short a stock under $2.50, which can make shorting penny stocks very costly. For example, if an investor shorted 2,000 shares of a stock at $0.50, you have to have $5,000 in your account. All along, the maximum profit for this position would only be $1,000, if the stock went to zero."

Now tell me. Would you short 150k shares worth about $1500 at this level AND put in a margin requirement of $375,000 JUST TO MAKE A PENNY BACK ON SHORTING IT TO ZERO???? GET REAL THAT IS SUICIDAL FOR THE AMOUNT OF RISK WITH VOLATILITY IN THE OTC. I DO THIS FOR A LIVING.
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