Nymet Holdings Inc. (fka NYMH)

[Thirsty Tiger]

So you want to borrow 400,000 PHGI for shorting from Interactive Brokers

1. Open a margin account with IB: Portfolio Margin accounts must maintain at least USD 100,000 (or USD equivalent) or the account will be restricted to only margin reducing trades.

2. You sell 400K PHGI short at 0.01: Broker (IB) fee for 300,001-3,000,000 Shares $ 0.002/share == $800

3. Margin requirements for initial (at the time of trade), and maintenance (when holding positions) for a Non-Marginable Short Positions: 100%*stock value


For a total trade value of $4,000 you pay a $1600 commission ($800 each way) and have a 100% margin requirements. Still think it’s a good idea?


This is precisely the reason why pennies make bad shorting targets. The risk/reward makes no sense. But then again, people would not have anything to post about if they didn't believe in all the penny shorting BS