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$$$eeker

03/27/13 12:45 PM

#4666 RE: Iuhoosierben #4662

You didn't answer my question. Who do you have your margin account with?
Risks of Shorting Penny Stocks
Margin Requirements
Brokers require investors to put up collateral to guarantee against potential losses in the form of margin requirements. Often times, brokers will require OTC investors to have $2.50 of margin per share to short a stock under $2.50, which can make shorting penny stocks very costly. For example, if an investor shorted 2,000 shares of a stock at $0.50, you have to have $5,000 in your account. All along, the maximum profit for this position would only be $1,000, if the stock went to zero.