RE:RE:Short CoveringWhen you short, its a "line of credit" from lender by selling borrowed shares. When you cover, the difference b/w how much you borrowed and what you paid to cover is your gain or loss. Margin call is if you don't have enough equity in the account to cover the margin requirements. The retail shorts will get burned but big $ shorts have the equity to cover most losses.
Avatarhash wrote: Yes, shorts gonna get margin called depend on the price they shorted ... I would assume it should be soon if not already
skyplt wrote: I have never shorted a stock, so do not know the process. Only guessing from my experience with buying on margin.
When Hindenburg's report surfaced and they stated "zero" I can imagine some enterprising shorts bougtht contracts for something like 6 dollars. My question is when it gets to 9 does the bank or other institution that loaned the shares ask for them back? This would mean the shorter would have to buy today at 9 to get 6. Do I have this correct?
Primarily trying to figure out when we will see a short squeeze (opposite of margin call?). Is there enough uncertainty regarding tomorrow's financials?
That being said, I believe another poster nailed it this morning when they spoke about guidance. I would not be surprised if earnings are 20M...I want to hear what they anticipate next quarter's to be.