<Can you short from the web site or FOX or must it be called in?>
You can short using FOX, but be warned that it is incompatible with IE 5.0. No estimated date or promises for a fix. It was suggested that I trade using the Web site if it's a problem. I have a feeling that FOX is going to die on the vine. Also, unless you're shorting a very liquid stock, you'll probably have to phone it in. Limit orders have a tendency to sit there and be ignored even when the stock comes up to meet your price. You're better off calling first thing in the morning and talking to a trader. If I recall correctly, you get the lower commission if you enter the order first and then follow up with a phone call to check the status.
As far as I know, you can't short BB or < $5. At least you couldn't last time I asked, about a year ago. Covering can be an adventure too. One stock I shorted went to the BB, and I put in an order to buy to cover at $1.50. A few days later it hit my price on the ask, but nothing happened. I called up to find out why and the reason I was given was that Fidelity didn't fill the order for my own protection, because BB stocks are dangerous for individual investors. I pointed out that since I was covering a short, it was probably safe for me to buy. After a bit of discussion, they agreed to fill the order for me at my price.
Those are the minuses for Fidelity. There are a couple of strengths. First, they do have good availability for all but the most illiquid stocks. Second, I've held a couple of shorts where others got called in and I didn't. I don't short that often, so I may not have enough of a track record to be statistically reliable. However, I have never come across anyone who reported being called in by Fido.
HTH,
Mark
Edit: Oops, this was meant to be a reply to Linden. |
