Good description and I agree. However, MM’s short penny and sub penny stocks all the time under the guise of making a market. They don’t play by the same set of rules. The naked short shares just go to die in the obligation warehouse.
If a multi millionaire has margin to cover up to stop loss, why would brokerage even care? They are getting their txn fees either way. $9k is good money even for millionaires. The margin requirement is not real cost, just a ticket to play. Actual short losses are no different than selling upside down long positions. Anyone here on this board with enough margin should be able to sell short with stop limits. Better use caution with this bull ticker though or you could end up on a talk show with Ricita here -
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