Replies to post #81927 on Astra Veda Corp (ASTA)

[VeronicaFox]

Who would short this for $2.50 per share maintenance margin plus fees?

Hypothetically speaking, open a new trading account. Deposit enough to cover maintenance margin. Buy 1M shares of ASTA @ .009 that’s only $9000, however Margin maintenance required is $2,500,000.

After fees and costs, Highest possible gain is approximately $6999. Gains are capped, losses are infinite. What astute trader would put up $2,500,000 - ALL AT RISK - for a possible maximum gain of $6999?

That’s why “shorting” in the OTC is not a problem, but unfortunately it’s claimed everyday as if it’s abusive.