Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: zora who wrote (8906)	2/14/1999 11:44:00 PM
From: Jon K.	Read Replies (2) \| Respond to of 56535

Zora, short questions: >>(1) pay interest on the amount shorted until you return them to the broker << Actually since you sold the stock, the money is in YOUR account. Most brokers pay YOU the interest on the money that is sitting on your account. >>(2) always trade using margin dollars << I didn't exactly understood your question, but yes you can only use your margin account. The stock has to be marginable for you to be able to short that stock (I am using Datek and many stocks that I want to short are not marginable, thus cannot short even if the stock is trading way above $5 levels, like SATH, ENMD... I am going to open another account for shorting purpose) >>can the broker sell your shares if the price goes up and you don't have the money in your account to cover?<< You bet cha, your broker will sell(cover) your stocks if the stock price continues to climb and you don't have enough fund in your account. But this is also true even if you are LONG on margin account, if the stock price falls. Cash account will not be touched no matter what happen to the stock price. jon