I'm very new to short selling and I just wanna get all the details before diving into short selling. Is there any advice you might want to give me before thinking about selling short? Also how does the Hard-to-borrow fee work? Thank you guys.
I'm very new to short selling and I just wanna get all the details before diving into short selling. Is there any advice you might want to give me before thinking about selling short? Also how does the Hard-to-borrow fee work? Thank you guys.
First You need margin account .2nd your broker has to have shares 3rd) Best example I can give you is EBIO , I shorted 2000 shares on Wed and I covered ON Monday : for this trade I paid
$20 commision + $40 hard to borrow fee (APR was 99%) and also keep in mind for shorting stocks under $2.5 you need to have $2.5 for margin requirement . For shorting 2000 shares Ebio at $1.50 you need to have $5000=$2.5*2000
One rule i follow is : don't hold overnight. Especially if you are covering the 2.50 rule through margin. ALSO, i recommend entering the position a pullback.
Thank you guys
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