OTCPK:ARNBF - Post by User
Comment by
Shoulderson Nov 20, 2014 12:01pm
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Post# 23148134
RE:9.5 Cents
RE:9.5 CentsHow do you short a stock at $0.10?
What broker will do this trade?
How do you borrow a 0.10 stock to ensure you're not bought in after you fail to deliver?
I know everyone wants to blame everyone else and the 'shorts' are an easy target but borrowing an unmarginable stock is pretty tough. If I recall correctly any stock below $3 is typically not margin eligible. Meaning you have to pay 100% when you buy it. Meaning when you buy it you own it outright and the broker where your account is can't lend the stock to someone else to cover delivery of a short trade. If they do this they violate the segragation rules which is a major issue for the broker so they are very unlikely to do this as a 'favor' even for their internal traders.
So the only 'shorting' that can go on is that which is done during the day and then covered before the close. Not enough to drive Arcan down to current levels.