GREY:TSTIF - Post by User
Comment by
eunice12on Jan 22, 2017 5:27pm
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Post# 25739219
RE:RE:RE:RE:RE:RE:RE:RE:No Stock to Borrow
RE:RE:RE:RE:RE:RE:RE:RE:No Stock to BorrowYou effectively said it is a one to one ratio that the brokerage is required to maintain when you said every share you move from margin is a share a shorter has to cover. When I talked to my discounter I thought he said it was a different ratio than one to one?
Also I thought once the brokerage overall breached the shorts to marginable ratio that every short was required to close their contract by buying by the end of that day. If so, then as long as the total shorts with that brokerage stayed within the ratio, it doesn't have an effect when small amounts are moved from margin to cash account. However once the ratio is breached, the brokerage invoked a full scale short covering. That is how it went the time I shorted AirCanada, one massive short covering for the entire brokerage, although anyone could short back the next day. Correct?