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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Walkingshadow who wrote (8016)	4/21/2005 6:41:09 AM
From: sandintoes	Read Replies (1) \| Respond to of 8752

Oh that I never knew. That's why I never shorted I guess I thought it was similar to buying calls.

To: Walkingshadow who wrote (8016)	4/21/2005 12:58:04 PM
From: MJ	Read Replies (1) \| Respond to of 8752

Terry Following the discussion here------do you not have to have enough cash in the account to cover the short-------or am I confusing this with puts. mj

To: Walkingshadow who wrote (8016)	4/21/2005 1:17:19 PM
From: rrufff	Read Replies (2) \| Respond to of 8752

Interesting discussion. One little caveat. You can have borrowed shares that you sold short called for a number of reasons. Recapitalization or change in capital structure, longs calling in shares and now supposedly under Reg SHO. The extent of whether these things happen is subject to very heated debate, particularly with the issue of naked shorting. But the point to make here is that even if you are making money on a short position, the shares can be called. In fact, this can, but doesn't often, happen without advance notice. The broker buys you in, at market price. I've had friends have this happen and they were upset at the way it was handled as a gain was turned into something else because of the broker buying in your borrow at terrible prices.