for a small account to test strategy, ZECCO account will be good? These were all on Sogo’s easy to borrow list. Wrong! You won’t remember me but we have spoken on the phone a couple of times regarding being a millionaire challenge student of Tim Sykes. You ever short at speedtrader? There is nothing wrong with shorting. This creates buying pressure on the stock. If the short sellers were not involved in the stock, it could plummet! The store manager gives me the difference between the price you paid and the sale price - $500.00. I researched the HTB stocks and found out the following sample : By shorting stocks yourself, you will be able to gauge where other traders are going to short stocks and cover their positions. If a stock goes down, then this is "bad". (I have porfolio margin). Thank you, Michael. Thanks, Hi Michael, this post is so helpful I keep going back to it. Tradestation – Tradestation primarily self-clears for stock trades. Read this article to gain an understanding of basic hedging strategies. I get a pop-up that says pre-borrow requests are only for market orders only. Here I am reading this almost 5 years later, but looks like the brokerages haven’t changed their methods or platform (except the merging of TDAmeritrade and ToS). This stock has rallied up into the TAZ and formed a swing point high which is part of our normal entry strategy. The list is headed by the company Keurig Green Mountain, whose stock rose by 7729 percent. If you want to trade like me or Tim Sykes, you need borrows, and IB really is the best. Dividends are typically paid regularly (e.g. Thanks Reaper for the AQS stock loan info. E*TRADE has more choices for you when placing a trade than just the below options. IB allows short selling stocks of any price (although short selling stocks under $2.50 requires more capital) and allows short selling of OTC BB and Pink Sheets stocks. Is there any practical difference between Centerpoint Trader and Das Pro? So the line above indicates that as of 1:30pm EST on June 7, 2010 there were 20,000 AMEL to short at an annualized interest rate of 2.69%. Preborrowing shares reduces the likelihood of a forced buy-in and will enable a short seller to sell short stocks that are hard to borrow. I have an account at Etrade that I rarely use. System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors. Watchlist for September 18th: Four witches,, Interactive Brokers brings the stock loan marketplace to the independent trader « Reaper Trades, An introduction to short selling at Interactive Brokers « Reaper Trades, Trade recap for January 25th and some info on Lightspeed Trading « Reaper Trades, My thoughts on various brokers « Reaper Trades,, It’s still in the text version obtained via ftp though. Once you begin to short stocks, you will begin to get more comfortable with it. (Direct link to video). Investment advisory services offered by E*TRADE Capital Management, LLC, a Registered Investment Adviser. You get the shares. Following are instructions for many different brokers on how to borrow shares to short and how to see which stocks are available to short. When you short a stock, you will borrow the shares from your broker, wait until the price drops, buy the shares, then return the borrowed shares back and you will profit the difference. My account is less than 110k so I can’t reserve with IB (yet) . Nice job on the video. Here is an example: Microsoft is trading at $30.00 a share. HI. It seems on the Interactive Brokers list they always seem to have shares to short. Here are some of the biggest investing myths we’ve come across, along with some tips and pointers to help you stay focused. I look forward to rejoining Tim as soon as I can get my account back up above $25k. if ( notice ) Sometimes you can make money faster by shorting than by buying. You are borrowing shares of Microsoft from your broker at this high price of $30.00. Reading this in 2015 after watching one of your presentations. Looking for the best stocks to trade? }. FUQI: IB current rate -50.38 203-618-5991. reaper, thanks for the ftp for IB’s shortable stocks list. You can read more and enroll here. Until they were bought by Ameritrade, TOS cleared through Penson and thus had different short stock availability and different rules. It depends on which side (long or short) of the market you are on. If this all sounds confusing, imagine this scenario: You buy a new plasma TV for $4000.00 and invite me over to see it. They do not realize that you can make money when stocks go down. When you short a stock, you need to be aware of some extra costs. Stock plan administration solutions and services offered by E*TRADE Financial Corporate Services, Inc. All separate but affiliated subsidiaries of E*TRADE Financial Corporation. Just as you expected Microsoft goes down to $20.00 a share. Preborrow orders are accepted on all US stocks and the minimum size for a preborrow order is $10,000. Apex has sucked for years for borrows. 9 years running. Read this article to understand some of the considerations to keep in mind when trading on margin. It's good to have a clear idea about price types and other order details. Anyway, I am really interested whether one can get competetive/superior rates in the AQS auctions compared to the mean indicative rates given in the SLB list. [Update 2017-5-3]: Interactive Brokers allows preborrowing shares to short of any stock. So what do I do? Member FINRA/SIPC. Enter your order. I usually short with Etrade but recently had my account fall below $25k then made the mistake of buying and shorting the same stock on the same day which turned out to violate an SEC rule I … You can seriously increase your capital after a while or, conversely, after a while your capital may decline. Spot and seize potential opportunities with powerful tools, specialized support, and competitive margin rates, We give you the tools and resources to make fully informed decisions about using margin, Sophisticated traders can increase their buying power and lower their margin requirements with portfolio margin,      or call 800-998-8079 to speak to a representative. You mentioned Centerpoint (backup) and Tradestation (20-30% when IB doesn’t have them). Fidelity Investments. However they said that they are hard to get. Matt Krantz is a nationally known financial journalist who specializes in investing topics. ETF. If the stock begins to rise rapidly, then short sellers will get nervous and want to buy (cover). Lightspeed, Sogotrade (Genesis), and Interactive Brokers all self-clear, as do the big brokers (TD-Ameritrade, E*trade). When you're ready to buy (or sell) a stock, it's time to fill out the trade ticket. setTimeout( You think that the price is going to go down so you short … Shorting stocks priced below $1 per share is prohibited. So you are really just trading the opposite of how you would trade long positions. Please reload CAPTCHA. Make sure you understand some key ideas before placing your first trade. You wait for the stock to fall and then buy the shares back at the new, lower price. IB is self-clearing but even their rates are huge, for some stocks with big volatility skews (aka futures discount) the borrow rates are ridiculously high – approx 100% on annual basis. Thank YOU for not filling it with ads. Anyway, just because a stock is on the list does not mean it cannot be short sold. Just saw GBE break 1.00 with Investor’s Live. Hi reaper lately I wasn’t able to short sale stocks like ZANE and IFLG, at IB Great great post. While there is an inter-broker stock loan market, it is not very well developed ( is one company that provides such services to brokers; AQS is another). The information contained in the third-party material has not been endorsed or approved by E*TRADE, and E*TRADE is not responsible for the content. This information neither is, nor should be construed as, an offer or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product, or instrument discussed herein, or to open a particular account or to engage in any specific investment strategy by E*TRADE. You must enter a short order and if it is rejected then that stock is not shortable at the present time. Didn’t know that even existed! Short sellers slow the rapid decline of a stock by buying to cover on the way down. var notice = document.getElementById("cptch_time_limit_notice_98"); I went with TD Ameritrade to short sell, but have not been able to get shares for the last 5 trades I have tried to make. You immediately sell the shares you have borrowed. These are just some of the simple steps to help you get invested. Contact your broker to find shares of the stock you think will go down and request to borrow the shares. Hey Michael – thanks for the post. Here’s an example: Shares of ABC Company are trading for $40 a share, which you think is way too high. I’ve been having trouble getting the shorts I want with IB. Securities products and services offered by E*TRADE Securities LLC. This site uses Akismet to reduce spam. I tried to look at that IB feature (I am also IB user), but they require portfolio margin account, will not even allow that feature in the paper trading account, which is stupid. I think you will really enjoy tinkering around with this trading algorithm! Any info out there regarding availability of borrows with Lightspeed and how it compares to IB or Genesis? … You return the shares to the brokerage you borrowed them from and pocket the difference. You think that the price is going to go down so you short 200 shares ($6000.00). At the moment there are no offers to lend any of those. Now my Etrade account is restricted for 90 days so I took Tim Gritanni’s advise and opened an account with another broker. Do your research. No positions. To submit a preborrow order you must have a Portfolio Margin account (this requires approval and a minimum $110,000 equity in your account). how to short a stock on etrade to take or not to take? Some people claim that shorting stocks is un-ethical because they are contributing to the stock price going down. In a bear market, the professionals on TV talk about how "horrible" the market is to encourage investors to sell. Krantz is the author of Fundamental Analysis For Dummies and co-author of Investment Banking For Dummies. So they should have the same short lists too. It is closed for the day, at 3pm EST. Investors should assess their own investment needs based on their own financial circumstances and investment objectives. He then went into a work meeting, planning to … In order for you to be able to short a stock, Etrade must also be able to locate the shares to borrow. If the stock pays a dividend while you are short, YOU will be liable (you'll have to pay it). even with their per share commissions. The information contained in the third-party material has not been endorsed or approved by E*TRADE, and E*TRADE is not responsible for the content. This information neither is, nor should be construed as, an offer or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product, or instrument discussed herein, or to open a particular account or to engage in any specific investment strategy by E*TRADE. 5 Need a little help? I saw online that it seemed so for an extra charge I believe. You sell the shares and pocket $4,000. Did you know your “how to short stocks” webpage is dated aci to September. Are you looking for an easy trading system to follow that takes all the guesswork out of when to buy and sell stocks? Hi Michael. Terms of investing in how to short a stock on etrade. I have found in general poor availability of stocks there, but of the stocks I do find, the rates are often superior to IB rates. While you are gone, I see a commercial for the exact TV that has just gone on sale for $3500.00 - at the same place that you bought it! Also, the stock is trading below the 200 period moving average.