Can someone clarify something for me? I have an account at Etrade. I spoke to one of their customer service people and he said that you cannot short a stock below $1.00 and that the are certain restrictions of shorting a stock below $5.00. Is this just specific to Etrade or is this across all brokers?
If you have a margin account set up you should be fine to short sell.
It's an E-Trade rule. Read this: http://www.timothysykes.com/blog/can-you-short-sell-stocks-under-2-can-you-short-sell-stocks-under-5/ Interactive Brokers doesn't have such a limit: https://ibkr.info/node/285
Just don't ignore the $2.50 rule either. Make sure you can afford it. http://tradetheticker.blogspot.com/2014/02/question-what-is-250-rule.html
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