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That whole video is about how terrible an idea it is to short pennies. I don't think Clay shorts pennies. The margin requirements are enough to make it unfeasible.
If you wanted to short 1,000,000 shares of BMXC, you'd have to put up $2.50 on margin for every share.
BMXC has gone from a recent high of about .05 down to .02, so that Million share short would have gotten about $30,000.
Which seems like a lot, until you remember you had to put $2,500,000 at risk just to make that.
The costs far outweigh the benefits.
If you wanted to short 1,000,000 shares of BMXC, you'd have to put up $2.50 on margin for every share.
BMXC has gone from a recent high of about .05 down to .02, so that Million share short would have gotten about $30,000.
Which seems like a lot, until you remember you had to put $2,500,000 at risk just to make that.
The costs far outweigh the benefits.
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