Thanks for information and I certainly will call tradestation just to see but I doubt they will permit naked short selling of this stock.
As far as market makers selling short this non-DTC eligible stock to settle in 3 days or as you indicate up to 13 days that still seems a bit unlikely, though selling short the same day to cover by market close probably very frequent. I talked to a friend who is active market maker in low priced stocks and his opinion that it would be uncommon in a stock at this price range and trading volume to be shorted more than a day. To add to your comments selling short works against a broker's net working capital requirement, basically effecting how much the broker can trade per day. Do brokers play games with bid/ask prices to try to influence market, of course they do.Will retail customers sell blocks they have to drop ask price to suddenly pick up more, certainly posible. Do brokers sell a stock into strength figuring they can cover later in the day, very understandable they would do this.
Some brokers for a non-DTC eligible stock will charge extra per trade,and when sold delay when proceeds can be sent until they are sure transaction goes through.The DTC chill generally has nothing to do with permits etc, but related to risk DTC sees and in particular in relation to prior share issues.
One thing I don't know is if the stock is not DTC eligible, are some trades still being settled via DTC,ie. from prior balances ? It would seem so. Anyone know ?
