InvestorsHub Logo
Followers 1037
Posts 114795
Boards Moderated 13
Alias Born 06/10/2006

Re: None

Sunday, 06/28/2015 8:54:01 AM

Sunday, June 28, 2015 8:54:01 AM

Post# of 1644
How difficult it is to sell short OTC stocks in the last several years? First, no "hedge fund" nor any offshore brokerage can "naked short" anything - they can only sell short through a US market maker and they are required to put up $2.50 in margin for each share of an OTC stock they wish to sell short - and the shares must be available for borrow, as they must be delivered on day T+3.

So the idea that some "hedge funds" are now short-selling any significant amount of a OTC stock is pretty ridiculous. Do the math with a $2.50 cash margin deposit to sell short a $0.01 stock.

You should not make any trades or decisions based upon anything said or written by posts on this board with regard to investments without consulting a professional financial planner/adviser..

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.