All Questions
Tagged with margin shorting-securities
19
questions
2
votes
1
answer
117
views
Hedging a portfolio by shorting index - Margin calculations
I wish to run a long-only portfolio of stocks and hedge it during turbulent times by shorting a correlated index.
I'd rather short an index ETF for hedging instead of flattening my position. My ...
- 119
7
votes
2
answers
3k
views
What is the difference between margin trading and short selling?
In margin trading, you borrow money from a broker to purchase securities. In short selling, you borrow securities to sell them. Still, in both cases, you are borrowing from the broker. Is the only ...
- 183
5
votes
2
answers
1k
views
What is the actual reason the short sellers of GME can't just hold their positions until the price goes back to normal?
Thinking about the current situation where GME has been shorted by more than the existing float, I think I have a basic understanding of short selling as selling shares you've borrowed. I've seen a ...
- 151
4
votes
1
answer
2k
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How does voting work when shares are lent out to short sellers?
At a stock brokerage firm, A has 1000 shares of a stock in a margin account, while B has 500 shares. The stock brokerage firm holds all these shares in street name and can lend these shares to short ...
- 17.1k
0
votes
1
answer
146
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Can I use the money I obtained from shorting a stock? [duplicate]
If I were to short a stock currently valued at $100, I understand that $100 would be placed into my margin account. Can I use that $100 to purchase stocks?
- 13
0
votes
2
answers
1k
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Do I earn interest when shorting stocks?
Suppose I short 100 shares of a $5 stock. My cash balance will be +$500 due to the short position. Does this $500 earn any interest?
I have heard two opposing answers:
The $500 earns interest, and I ...
- 17.1k
0
votes
1
answer
177
views
How does short margin works internally?
I understand the concept of being short, but I don't understand how it works, maybe is easy to explain with an example:
1) A has $1 in his account.
2) B has $1 in his account.
3) A wants to buy ...
- 593
1
vote
3
answers
5k
views
Do I have to pay interest on a margin short sale if I post full cash collateral?
Let's say that I have $100 in my account and I want to short sell stock A. Stock A is valued at $100, so therefore I sell one share of stock A.
In order to do this, the account is a margin account. ...
- 119
3
votes
1
answer
1k
views
Is possible to short sell stocks without using CFD?
the title is all my question :)
Is possible to short sell stocks without using CFD?
- 593
-1
votes
3
answers
199
views
By pass the 100% limit in shorting: Capitalising on a Market Crash
I want to short a cryptocurrency that is highly overvalued.
Let say its current value as of now is $10,000 , my intuition say that sometime next year like Feb its going to fall significantly to about $...
- 113
0
votes
1
answer
122
views
What's wrong with this margin calculation?
I'm calculating margin on put selling options using TDAmeritrade's formula. It can be found here on p.11: https://www.tdameritrade.com/retail-en_us/resources/pdf/AMTD086.pdf
Using the first example ...
- 1,408
2
votes
2
answers
339
views
Can I use my long position stocks as margin for my short sold stocks?
Let's say I am going to use short selling as a way of hedging. For example, I will buy $100 of GOOG stock and short sell $100 PNQI.
Let's say my broker wants 200% margin on short sells (100% my own ...
- 559
0
votes
1
answer
94
views
What margin is required to initiate and maintain a short sale
If I short 100 shares of a stock trading at 20$, what is my initial margin and my maintenance margin that I need to maintain with my broker?
I have a REG T margin account.
- 16k
2
votes
2
answers
2k
views
How to calculate how far a shorted stock's price can rise before broker issues a margin call?
If I short AAPL at 500$, how much can the stock rise before I get a margin call?
Does it depend on how much Cash/Equity in other stocks I hold in my margin account? I just thought that if margin ...
- 16k
3
votes
1
answer
9k
views
What does it mean when the broker does not have enough shares to short?
I recently opened a margin account at Questrade with 1000 dollars to see if I can learn anything about margin trading.
Today, I'm trying to short sell 2 shares of XLU at a $40 limit price and it says:...
- 16k