Not a broker in the world wants to get involved with that. I know Qtrade wont. It is not illegal but it might as well be because if a broker does do penny shorts they make it so tough to do no one would even consider it.
Also current short position for MCC is whopping 300 shares , so much for that theory. Once again I would request we work with facts here not some childish posts that we have all seen a 1000 times. Who is this Red dude and WTF is his problem? I hope you are not following that idiots lead on this play are you? Guy comes across as a complete raving lunatic. Has not answered my one simple question as no one else here has either , why is the Level 2 looking like it is a bunch of fluff bids by anon and only three or four legit bids?
It seemed like a simple question but I guess if all people know is how to pump they really never have answers to legit questions. The way they handle an opposing view is multiple post which border on insanity and most certainly cross lines in personal attack territory. I thought that was not allowed on Stockwatch but I dont have time to make TOS reports on all the childish posts from the pump gang or I would have to hire an assistant.
IMHO it just goes to show the real makeup of the poster when he must resort to that type of online bullying to try and save face. Obvious he is of little character and even less knowledge.
GLTA
| V : MCC | 2016-01-31 | 300 | -20,300 | 51,725,489 | 0.00 |
| V : MCC | 2016-01-15 | 20,600 | 20,200 | 51,725,489 | 0.04 |
| V : MCC | 2015-12-31 | 400 | -100 | 51,725,489 | 0.00 |
| V : MCC | 2015-12-15 | 500 | 0 | 51,725,489 | 0.00 |
| V : MCC | 2015-11-30 | 500 | 500 | 51,725,489 | 0.00 |
| V : MCC | 2014-09-30 | 0 | -2,500 | 51,725,489 | 0.00 |
| V : MCC | 2014-09-15 | 2,500 | 2,500 | 51,725,489 | 0.00 |
| V : MCC | 2014-07-15 | 0 | -5,000 | 51,725,489 | 0.00 |
| V : MCC | 2014-06-30 | 5,000 | 2,500 | 51,725,489 | 0.01 |
| V : MCC | 2014-06-15 | 2,500 | 2,500 | 51,725,489 | 0.00 |
| V : MCC | 2014-03-31 | 0 | -500 | 51,725,489 | 0.00 |
| V : MCC | 2014-03-15 | 500 | 500 | 51,725,489 | 0.00 |
| V : MCC | 2014-02-15 | 0 | -14,000 | 51,725,489 | 0.00 |
| V : MCC | 2014-01-31 | 14,000 | -2,500 | 51,725,489 | 0.03 |
| V : MCC | 2014-01-15 | 16,500 | 11,500 | 51,725,489 | 0.03 |
| V : MCC | 2013-12-31 | 5,000 | 5,000 | 51,725,489 | 0.01 |
| V : MCC | 2013-11-30 | 0 | -443 | 51,725,489 | 0.00 |
| V : MCC | 2013-11-15 | 443 | 443 | 45,851,189 | 0.00 |
| V : MCC | 2013-10-15 | 0 | -7,000 | 45,851,189 | 0.00 |
| V : MCC | 2013-09-30 | 7,000 | 7,000 | 45,851,189 | 0.02 |
| V : MCC | 2013-09-15 | 0 | -500 | 45,851,189 | 0.00 |
| V : MCC | 2013-08-31 | 500 | 500 | 45,851,189 | 0.00 |
| V : MCC | 2013-06-30 | 0 | -45,000 | 45,851,189 | 0.00 |
| V : MCC | 2013-06-15 | 45,000 | 45,000 | 45,851,189 | 0.10 |
| V : MCC | 2013-05-31 | 0 | -60,600 | 45,851,189 | 0.00 |
| V : MCC | 2013-05-15 | 60,600 | 60,450 | 45,851,189 | 0.13 |
| V : MCC | 2013-04-30 | 150 | 0 | 45,851,189 | 0.00 |
| V : MCC | 2013-04-15 | 150 | 0 | 45,851,189 | 0.00 |
| V : MCC | 2013-03-31 | 150 | 150 | 45,851,189 | 0.00 |
| T : MCC | 2003-05-15 | 0 | -264 | | |
| T : MCC | 2003-04-30 | 264 | -250 | | |
| T : MCC | 2003-04-15 | 514 | 514 | | |
| T : MCC | 2002-12-31 | 0 | -500 | | |
| T : MCC | 2002-12-15 | 500 | 500 | | |
| T : MCC | 2002-08-31 | 0 | -1,160 | | |
| T : MCC | 2002-08-15 | 1,160 | 1,160 | | |
| T : MCC | 2001-09-30 | 0 | -334 | | |
| T : MCC | 2001-09-15 | 334 | 334 | | |
What are the rules of short selling?
To facilitate a short sell:
- You must use a margin account. Questrade will closely monitor the account to ensure you’ll be able to meet the minimum credit requirements on your short position. Refer to the following table for details:
| Share price | Margin requirements |
| Reduced margin eligible securities | 130% of the market value |
| Securities selling at $2.00 or more | 150% of the market value |
| Securities selling at $1.50 to $1.99 | $3.00 per share |
| Securities selling at $1.00 to $1.49 | 200% of market value |
-
You must borrow the shares from Questrade. You do not have to pay interest on the borrowed shares unless the shares are deemed as ‘hard-to-borrow’ because the security is either in high demand or experiencing increased volatility. The borrow rates vary considerably – from 1% to 150% – depending how difficult it is to borrow the security.
Note: funds received from short sells do not offset your margin requirements for long positions.
-
Loaned shares can be recalled at any time. Generally, there are no rules governing how long you have to cover a short sale when returning the shares to Questrade. However, please be aware that you may be subject to a potential buy-in with minimal notice, requiring you to cover your short sale immediately.
What happens if Questrade does not have any available inventory?
If your short order is rejected, this means that Questrade does not have any inventory of shares to loan. However, if you still want to short the stock, you can contact our trade desk to see if they can find the shares to lend to you. You’ll be subject to a borrow fee, which is typically 2% to 20% of the stock’s market value. However, keep in mind that the borrow fee can be as high as 150% in some cases.
For example:
You borrow 1,000 shares of ABC stock valued at $35 per share.
Borrow fee = $35,000 x 2%/360 = $1.94 per day.
You can contact Questrade’s trade desk, Monday to Friday, 8:30 a.m. to 4:30 p.m. ET, at 1.866.980.9590.
Note: after covering your short position, you must contact the trade desk to prevent the borrow fees from being further charged to your account.
What are the risks of short selling?
- You may be forced into a potential buy-in. A buy-in means that Questrade may ask you to return the borrowed shares at any time, typically by the time market opens the following trading day. A buy-in typically occurs when the original owner of the shares wants them back to sell them. In this case, we will notify you that we will attempt to locate new shares on your behalf. However, if we cannot find any shares to lend to you, you must cover the sale. Additionally, you will also be forced into a buy-in if you decide that you no longer want to pay the borrow fee.
- Losses can be unlimited. When the stock’s price rises, you lose money. Since there’s no limit on how high a stock can rise, unlimited loss can potentially occur. For example, let’s say you short 100 shares of a stock at $50. Several weeks later, the stock is now valued at $60. To cover your short position, you must go out on the open market and buy the stock for $60 per share, resulting in a total loss of $1,000. If the stock kept rising in value, your potential loss would be unlimited.
- Shorting stocks involves using borrowed funds. When you short sell a stock, you must use your margin account, which allows you to borrow money from Questrade against your held securities. In addition, you must also meet a minimum maintenance requirement on your short positions. If you fail to do so, you’ll be subject to a margin call. In the event you do not have enough cash and/or securities to cover the increased risk, Questrade will require you to deposit additional funds or reduce your existing position.
- Risk of short squeeze. As the stock’s price goes up, the losses will get higher for the short seller because there will be an influx of short sellers trying to cover their positions simultaneously. As more short sellers close out their short positions, this causes the stock to rise further, which will either limit your profits significantly, or cause you to close your position at a loss.
What are the restrictions of short selling?
- It is difficult to short penny stocks due to the extreme risk and because they are harder to borrow. Contact the trade desk to check if these stocks are available to short. Keep in mind that the stocks you want to short may also be subject to approval from our risk team.