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Re: Mr Wizard a1a post# 56838

Sunday, 11/22/2009 5:45:02 PM

Sunday, November 22, 2009 5:45:02 PM

Post# of 68510
What it means is I borrow X number of shares while the price is at .02 a share and sell them all, with the promise to pay them back in Y number of days/weeks.

During that time, I am charged interest on the money advanced, and have to secure the shares with a "Hold" on money in my account. This hold money can be up to $2.50 a share.

If the pps goes down, I buy back the shares, plus the interest and return them to the Lender, keeping the difference.

If the pps goes up, I buy back the shares, plus the interest and return them to the Lender, paying any overage out of pocket.

I do NOT like shorting. To me its like playing Russian Roulette.

Our two worst enemies are Greed and Stupidity...

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