How to do short sell ? Plz enlighten me , so that I can earn some kopi money
$GameStop(GME.US$
As what i know is moo moo charge me 6.99% for the share that i have borrowed for short sell. Just want to check, let say i start to short sell at 500USD, can i just keep this short sell position opening, eg 2 years , then buy back when it reaches single digit ?
Your advice is highly appreciated.
As what i know is moo moo charge me 6.99% for the share that i have borrowed for short sell. Just want to check, let say i start to short sell at 500USD, can i just keep this short sell position opening, eg 2 years , then buy back when it reaches single digit ?
Your advice is highly appreciated.
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thatsDway : u can keep for 2 years but u can also go bankrupt in the same time. short u can lose unlimited amount
NiloOP thatsDway: Hi bro, noted for the risk , eg if I shorted at 500 but price rise to 15000, even with one share, I am negative 14500 usd.
Will I face other risk such as the borrowed share is forced to return back ?
ilovebeans NiloOP: Yes, you may be margin called. Ie you probably need to provide collateral to prove you have the funds to continue the position. If there is a share recall, you will be forced to close the position and realisw your loss or profit. Stay away from shorting this stock, liquidity is bone dry and shareholder voting is in progress.
Dirtman NiloOP: Of course you will need to return when they deem you are in a position to high a risk for them to earn the interest. They work like banks for shorts. Just go long. As long you don't sell, you lose nothing
ilovebeans : By the way, the rules of Futu/MooMoo indicate that they will liquidate what they deem fit if you get margin called, ie. They can close out any or all your current positions, if you do not have the collateral on hand. Happy trading!
NiloOP ilovebeans: Hi bro . Thank you for the enlightenment.
Just to check the share recall is initiate by GME or you mean the broker (eg moo moo) that borrow the share to me initially take back the borrowed share ?
NiloOP ilovebeans: Noted bro !
NiloOP Dirtman: Thank you
, Dirtman.
ilovebeans NiloOP: Ultimately will be the company. Afterwhich brokers or Intermediaries will need to secure and account for the shares. But thats only if the company is in favour of a corporate action that warrants for a recall. A lender may also request to recall their shares at any point, therefore the risks.
Jgerich : Why not @Team moomoo