Tuesday, August 09, 2011 10:48:03 PM
Cargo Hauler
So lets assume you have an offshore account somewhere that would allow you the ability to short a stock such as this without any shares to borrow (despite the fact that there probably are shares to borrow at any given time http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln=&asset=&b=DIN&e=DRC )
You somehow managed to "naked short" exactly at the 52 week high? Assuming all the share volume at .14 was you then that was a total of 30,962 shares or $4,334.68 worth of stock.
At .08 that means you would have profited $1,857 which all sounds pretty good until you consider that even Interactive Brokers charges a $2.50/share maintenance margin requirement on stocks less than $5/share (http://www.interactivebrokers.com/en/p.php?f=margin&p=overview3#1a) which when you put it all together means:
You somehow nailed the top and all the volume was your "naked" short. You shorted $4,334.68 worth of stock and are currently up $1,857 (woohoo!) and ALL that it took you to do that was to freeze up $77,405 (30,962 * $2.5) for the required maintenance margin.
Great job
So lets assume you have an offshore account somewhere that would allow you the ability to short a stock such as this without any shares to borrow (despite the fact that there probably are shares to borrow at any given time http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln=&asset=&b=DIN&e=DRC )
You somehow managed to "naked short" exactly at the 52 week high? Assuming all the share volume at .14 was you then that was a total of 30,962 shares or $4,334.68 worth of stock.
At .08 that means you would have profited $1,857 which all sounds pretty good until you consider that even Interactive Brokers charges a $2.50/share maintenance margin requirement on stocks less than $5/share (http://www.interactivebrokers.com/en/p.php?f=margin&p=overview3#1a) which when you put it all together means:
You somehow nailed the top and all the volume was your "naked" short. You shorted $4,334.68 worth of stock and are currently up $1,857 (woohoo!) and ALL that it took you to do that was to freeze up $77,405 (30,962 * $2.5) for the required maintenance margin.
Great job
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