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Re: OTCNewbie post# 291646

Friday, 03/17/2023 10:58:19 AM

Friday, March 17, 2023 10:58:19 AM

Post# of 348625
Might wanna re-read my post.

Granted there aren't many OTC registrants that trade over $1. But, given that the $2.50/sh margin requirement is hard and fast, the risk/reward ratio makes shorting cheap stocks illogical and gets worse with lower stock prices.

There is no way a single trader is dumb enough to risk, say, $30000 in marginable securities to short $100 worth of this company. EVER.

Or, if a trader wanted to short $10,000 worth of DBMM, good luck finding a single penny trader with $3 milllion worth of marginable securities in his account.

Chew on that.