Replies to post #2496 on Seadrill Ltd (SDRL)

[1manband]

so what that its a naked short. Doubtful they'll bust that trade as those shares were likely traded back and forth by many other day traders and investors at this point. They'll just likely force cover him and give him a massive margin call as he didn't have enough $ to cover the trade. But he'll likely get to keep the gains.

No, this is a margin violation. The person sold stock he did not have, nor had arranged to borrow. Not only would a person in violation NOT be able to keep the gains, their account will be restricted.

A double penalty for making such a mistake. That is how it works in the real world.