actually, there are people making a living shorting otc stocks just don't short the high loan rate stocks many stocks have annual loan rates of below 10% and even below 5% That's a bargain eh? My most recent short cost me about $2 a share to short from my margin account (and only if I had enough to cover it in my cash account trading at .27 at the time. Dropped to .11 within 3 days. After fees on a $4000 short trade I made about $120! If I had bought the shares at a higher price (up to the lending broker) at even .28 it would have cost me more than $1000 to do that trade. If someone ever comes along and tells you that they make a living by shorting OTC stocks, they are entirely FOS, just sayin' =) Woot (if you want to know what shorting an OTC stock actually renders.) In addition, IB increased its stock loan borrowing rate on BEAG from 3.5% on Thursday to 68% on Friday