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One other thing, you maybe forced to go to the cash market to purchase the stock
and pay substantially more then the current bid and ask. Ira
Neal Hughes wrote:
> >At 06:25 PM 9/17/98 -0700, Alberto Torchio wrote:
> >RTs,
> >
> >How does shorting stocks really works? I have sometimes placed orders to
> short certain
> >stocks and my broker returned to me that they were unavailable for borrowing.
> >
> >Furthermore, I'd be pleased to know about Listmembers who have been able
> to short
> >realtively illiquid stocks with their brokers.
> >Alberto Torchio
> > Torino, Italy
>
> Alberto,
>
> I enjoy shorting stocks, but would NOT recommend shorting illiquid
> stocks. You may be forced out of a trade because your broker
> can no longer borrow that stock, this tends to happen at the
> worst possible times..
>
> There is enough beyond your control in trading, without letting
> your broker decide when you must exit your trade.
>
> -Neal.
>
> -----------------
> Neal on the 'net.
> Trade well. Train hard.
> http://www.halcyon.com/neal/
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