Replies to post #60759 on DD Support Board and Research Team

[streak1977]

Might I suggest MHYS as your first shorting experience haha... not sure what you're going to do with shares you can't sell for .0001 afterwards though...

[Buckey]

Wait till you see how much margin u need

[BigBake1]

Great, the first issue you will find, are there any shares to short. The next issue is if the security is marginable, if not then you are strictly on margin buying power only to borrow such non marginable shares. After you get through that you have to fund your account for Reg T requirements of $2.50 a share in Maintenance Margin. Did they also mention the fact that IB charges what is called "Supplemental Margin" of 102% of the principle amount?

This why shorting pennystocks is NOT a profitable trade, especially when you consider that you can only realize a total gain of 99% and the broker can pull your position at anytime. Further damage is done when a pump occurs and now you are on the hook for losses that can be infinite in theory.

[Realityhurts]

Seems incredibly risky, I use IB for big board options because of the commission cost advantage and good TWS platform, never short penny stocks, but, good luck.

If you short penny stocks, you eat like a bird, crap like an elephant.