I have never shorted a stock before. I wanted to know some basic questions before I experiment this strategy. When you borrow stocks to short, how much is the fee and interest. E-trader is my brokerage. I was thinking about getting Interactive brokerage as well. How long can you borrow it? The reason I asked, if interest is too high per day plus fee. I can't hold it too long. So I guess if I was wrong on a short, it would cost me a lot more even if I cut losses quickly than if I buy and sale. I appreciate anybody comments on their experience in shorting stocks. Thanks.
@mrsunny @PoolShark what are the pre-reqs to short? I too hve a scottrade a/c but not sure how one can start shorting?
@april4 You need to have a Margin Account and Scottrade only allows shorting stocks that are $5 or higher and not all stocks can be shorted. On several occasions my short trades were not approved and got canceled may be due to high-volatility and non-availability.
ok..thanks buddy
Your welcome. Happy Shorting :)
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