Questions tagged [shorting-securities]
Short selling of stock involves borrowing shares that one doesn't own with the intention of repurchasing them at a lower price. Short selling of an option involves selling an option without having an equivalent position in the underlying security.
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Who sets the stock loan costs in U.S. markets?
The market "fee rate" (a.k.a. borrow cost ) for borrowing stock shares to sell short can run very high. (One source for the current borrow cost is a list published every 15 minutes by ...
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Short interest and short volume does not add up
I know the difference between short volume and short interest. The later the number of the outstanding shares that are now (or any other date) in a short position; while the former shows how many ...
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Does Canada have regulations regarding "shorting against the box"?
If you hold a long position in a stock and believe it will go down but don't want to realize any gains, you can a open short position in that same stock to hedge against any drops in the price. This ...
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What happens to cost of carry when a commodity is short-sold?
Say investor B has a gold bar, and must pay 1 dollar per day to store it. Investor A shorts gold, borrowing the gold bar from B, and selling it to investor C.
What I want to know is, what happens to ...
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Who earns the interest during a naked short sell, where the shares haven't been located yet and fails to deliver
When someone naked short sells, who do they pay the interest to?
If they never locate the shares, then there isn't a shareholder to pay. Do they pretend to pay interest? Do they actually pay interest? ...
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How to know if a stock is being held short
Redditors successfully attack hedge funds because they know that GME is being held short by them. But how do they know this? Where do they get this information?
According to older posts, you can check ...
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Are short sellers responsible for damages in a securities class action suit?
Imagine that XYZ company was found liable for its misdeeds and its shareholders are awarded a compensation. Are the short sellers on the hook as well? That is, do they need to pay the amount of the ...
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Will SQQQ go back to 2018 level if QQQ will?
It's a theoretical question, but i am not able to figure it out. Is the relation between SQQQ and QQQ close enough to expect SQQQ go back to where it was at certain point in time, if QQQ goes back to ...
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Can I set a ceiling for above which I don't want to execute a short trade
I am wondering how I can achieve the following trading order (all in one). Say that at closing yesterday a stock traded at $10. Now late at night (or early morning) outside of trading hours, I want to ...
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What happens when a market-maker goes bankrupt during / as a result of an over-extended unsupported position?
The meme stocks have me thinking about the exchange backend. What happens when a market-maker / money-maker has an extreme position in a stock that is now unsupported by shares, just derivatives and ...
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Is it bad for a stock to be on the Regulation SHO threshold list?
I have been reading up on Regulation SHO, and I have found some lists of stocks on the Regulation SHO "threshold list": SEC:
Fails-to-Deliver Data, and OTC Markets:
Reg SHO Data. However, I ...
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Dividend impact on accumulating inverse ETFs
This is a pretty straightforward clarification question. For inverse ETFs tracking an index which are tagged as "accumulating", what this actually means is that we are not tracking the ...
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Can closing a short position trigger a wash sale?
I have a bit of a weird situation, and am not 100% sure how the wash sale rules should apply (in the U.S.)
Lets say I have 100 shares of a mutual fund that I purchased over a year ago for $10 each, ...
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What is the effect of a short stock position on the value of an option?
I'm reading the book "Option Volatility and Pricing" by Natenberg and there is a paragraph I'm having trouble understanding.
Chapter 7 (Risk Measurement 1), Page 98, Paragraph 2:
The value of a ...
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limiting losses when shorting stock
First time shorting stock just want to make sure I limit my losses correctly. Say I short 100 shares of SPY and $272 and I want to get out(cover my short) if it goes above $285 would the following ...
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Which short sale number is true in OTCBB or FINRA?
FINRA provide everyday's short sale data at the website:
short sale data
We can get field defination here field defination, Short Volume--Aggregate reported share volume of executed short sale and ...
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Unable to close a short sell position in Fidelity even after buying the the stock
I performed a SHORT SELL for MRNA stock sometime back and then performed a BUY to cover the SHORT. Even after many days of buying the stock I still see the SHORT position in my Fidelity portfolio. I ...
