I'm sure people have shorted stocks under $1 before but I can't emagine anyone doing it with Pktx.. There are so many horrible Otc's out there run by Ceo's with bad track records.. We just have to great of a stock to attempt that here..
This was written by theotcinvestor.com in 2009.. Its a long article but if you are interested its worth looking up..
Margin Requirements
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.
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