$2.50/share margin account balance requirement. Essentially "insurance deposit" to protect the broker against price rise.
"...Well. Thanks for clearing that up. Everyone on here is saying there is 2.50 per share charge when shorting a penny stock, that isn't the case. ..."
Actually I have rarely seen it referred to as a "charge". "Margin" certainly isn't a "charge".
But when looking at a stock like ANDI, if someone was able to find enough stock to borrow to make say $1000 AT MOST if the ticker dropped to 0.0001 they would need to put up $250,000 in margin (ALL at risk).
That type of risk makes no sense on ANY level.
And that margin requirement is the primary reason why penny stocks are rarely shorted.
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