Ummmm..hes making chit up. i have been around long enough to know that NO, ZERO, ZIP retail trader would EVER short a 000 stock..it would take an INSANE amount of capital just to short even 1m shares.. AND thats even assuming there is some broker out there willing to use some other clients shares to short (unlikely) Anyhow the risk vs reward is so far out of whack, it really makes no sense. its so far fetched i cant even believe im commenting on it. i must really be bored lol
"The maintenance requirements are through the roof on shorting pennies, usually something like needing $2.50 per share you short"
For kicks..lets do the math.
1,000,000 shares short X's $2.50/per share (maintenance requirement) ='s $2,500,000
And at 0006 whats he going to short that million shares to? 0003 ? So it would take $2.5M to make $300 bucks . Now back to reality lol