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Kool Aid Man

03/28/24 7:33 PM

#79115 RE: $$$$$$$ #79106

Penny shorting myth exposed...expert blows up the excuse

1 minute into Episode 2

https://claytrader.com/podcast/episode121/

Episode 1
https://claytrader.com/podcast/episode120/
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Bearish
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I-Glow

05/03/24 9:48 PM

#82345 RE: $$$$$$$ #79106

This shows how clueless you are about shorting - no one is going to waste their time shorting a sub-penny stocks - I see many idiots posting that sub-penny stocks are being shorted.

Here is a quick primer on shorting so you won't make a fool if yourself.

First you have to locate a broker who will loan you sub-penny stock - good luck on that.

Next you have to have a margin account - plus there is a borrow rate on the stock you borrow. Then there are margin maintenance fees. Here is the killer that I am certain you don't understand - there is the $2.50 rule.

The $2.50 rule is when you are shorting stocks that are priced under $2.50. The rule states that for every share you are short, you will need to put up $2.50 of capital, even if the stock is priced lower.

So if you borrow 1 million shares of Spooz stock to you will need to have $2.5 Million in your margin account - which will be dead money until you close your open short position.

If you were smarter you would understand that shorting a sub-penny stock isn't economically feasible.

"Im not blaming anything on shorts but I-something or other posted its not possible to short a sub penny stock. Not according to the data its not. FAKE NEWS FROM THE BASH Crew"

On every OTC scam some clown is always yammering about shorting - just as you did.

IG