Sometimes you can short a stock even if it is not marginable. It depends on the feed you are getting, and which online broker you use.
When I used DATEK to close my position on AIPN for a small profit, I used what is called an express server. I thought I had made a mistake on the order, so I tried to stop it going through to correct the error. There was not errore, so I re sent the order. What happened was that I sold my outstanding shares in AIPN for a profit, and I shorted the same amount of shares 11 seconds later.
When I called DATEK to try and remedy this situation as I had no desire to short AIPN, they just shrugged their shoulders and said that I placed the order, and it is my responsibility. This angered me as they list AIPN as a non marginable stock and one that cannot be shorted. When confronted with this information, they said that they sometimes allow this to happen(great logic huh). Another point at the time was that I had transfered the bulk of my capital to another equities account and an options account so I only had a couple of small positions in my DATEK account which meant that my capital was below the 2K requirement for margin, but they allowed that to happen as well.(Their inconsistancy was explained with the same nonchalant answer of "we sometimes allow this to happen")
In any case I got a confirmation that the feed DATEK uses is comstock, and that it sometimes will allow a short position depending on when order is placed,volatility in that particular issue, etc. So if you are dead set on shorting AIPN and you have DATEK, use the express non confirmation server 7 and work the order that way. No guarantees, but a few friends of mine have been able to short several stocks this way.
Still long in AIPN and not convinced that sub 1.5 will be seen again. |
