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Monday, June 27, 2022 8:09:31 AM
Math Example: Shorting 1 Million shares at $.01 = $10,000 maximum gain if stock goes to $0. Margin requires $2.50 per share, or $2,500,000 deposited in your margin account. Show-stopper right there for most people.
That $2.5 Million is to protect the broker if there's a price spike, meaning that amount is at risk.
You could put $2.5 Million in a savings account at 2%/year and make $50,000 risk free.
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