T2 Biosystems Inc (TTOO)

[BeamMeUpScotty]

A quick question for everyone as I’ve never shorted a stock ever nor will.

If you have an open short that you have not covered, if the short becomes substantially loss making, can your broker close out the trade without asking you?

Another quick question - can an uncovered short that is going up instead of down sustain unlimited losses if the trade is going against the account holder and that’s why possibly, some brokers reserve the right to close out a short that is loss making?

It would make sense because if the loss is very substantial and the value of the short traders account, if liquidated would not cover the loss.

It is my understanding that eventually the broker themselves would become liable to cover those losses when the trade was settled.

If so, when news comes out we might see something like that happening.