I'm not sure people understand that you are unable
Post# of 40989
(Total Views: 251)
Posted On: 04/17/2018 12:16:44 PM
I'm not sure people understand that you are unable to short penny stocks (unless you happen to have a deal with the market maker).
What's to gain on shorting a penny stock? In ONCI's case, the MOST you can make is .003 (at it's current .0030 price). In order to do that, one is required have $2.50 per share in their margin account in order show the ability to be able to cover in case the stock runs higher.
So IF I decided to short a million shares of ONCI at .003, I would need $2.5 MM in my margin account in order to make $3,000 . And then I would need to find someone to lend me 1 million shares. Who in turn would probably rocket the stock up to force me to cover.
Sometimes I think people just say stuff here without really understanding what they are saying. It exposes how little some people really know about the stock market. And why people are taken advantage of all the time.
Sad.
What's to gain on shorting a penny stock? In ONCI's case, the MOST you can make is .003 (at it's current .0030 price). In order to do that, one is required have $2.50 per share in their margin account in order show the ability to be able to cover in case the stock runs higher.
So IF I decided to short a million shares of ONCI at .003, I would need $2.5 MM in my margin account in order to make $3,000 . And then I would need to find someone to lend me 1 million shares. Who in turn would probably rocket the stock up to force me to cover.
Sometimes I think people just say stuff here without really understanding what they are saying. It exposes how little some people really know about the stock market. And why people are taken advantage of all the time.
Sad.
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