thanks for this detailed information. one issue t
Post# of 82669
one issue that puzzles me, is how in practice it can be worthwhile for anyone to short a low-pennies stock. i heard there was a relatively large margin requirement — so large it would not make sense to tie up so much capital to bet on a stock of a few pennies falling.
i’m glad to hear about the LER — sure wish i’d known about it in 2008!
the downside to a cash account is, (your brokerage will probably not allow you to have both a cash account and a margin account at the same time, but please let me know of any that do!) that in a cash account you have to wait days for the proceeds of the sale of any stock to “clear”, before you can use those funds to buy something else, whereas in a margin account you can buy stock almost immediately after selling stock, with the same funds.