Sunday, March 10, 2019 8:46:01 PM
If you don't understand the financial picture, consider this. If your brokerage WOULD allow you to short 100 shares of VRUS, that would cost you 100 X $2.50 or $250 PLUS the then-current share price ($.0066 X 100=$.66). That is simply to provide the margin the brokerage needs. Now, if VRUS dropped two ticks, and you took advantage of that, you would have made 100 X .0002 for a grand total of 2 cents. But to GET that 2 cents, you would have a trade cost of, say, $5, plus you would have had to put up the $250 to permit the short AND the $.66 to short the stock. You get your .66 cents back but have to pay .64 to close the short.
Only an idiot would scale that up to make, say $.20 or even $2, which would cost 100 times the margin...or $25,000 JUST to cover the margin only.
And, all of that would take place with a stock that is primed to take off. Who on earth would do that? Would YOU put up $25 grand to try to make $2 on this stock? How about using that $25,000 to BUY shares giving you almost 4 million more shares and instead bet that it would go up? The more likely scenario, obviously.
So, no one is shorting sub penny stock. No brokerage would even permit it. Look it up. Ask your brokerage, or ANY brokerage.
SANUWAVE Announces Reverse Stock Split, Note and Warrant Exchange, and PIPE Offering • SNWV • Oct 18, 2024 9:31 AM
Vocodia Addresses Recent Stock Price Movement and Future Strategic Partnerships • VHAI • Oct 18, 2024 9:00 AM
Mass Megawatts Announces the Start of an Online Discount Solar Energy Equipment Business with Revenue Recognized for the First Time Since Year 2010 in this Fiscal Quarter • MMMW • Oct 18, 2024 7:32 AM
Unitronix Corp Advances DeFi Innovation with Tokenized Real-World Assets Integration • UTRX • Oct 17, 2024 7:38 AM
Mass Megawatts Commences Solar Energy Sales Efforts • MMMW • Oct 16, 2024 7:45 AM
SANUWAVE Health Announces 1-For-375 Reverse Stock Split • SNWV • Oct 16, 2024 7:40 AM