Shorting

[deepete]

i tried to place a shorting order today, for the first time ever, and was surprised to find that both my UK brokers wont let me. Is this something I can only do with spread betting or are my brokers very basic. Anyone know if i can do this with IB on US shares.

cheers

Peter

 

[sandrab]

i tried to place a shorting order today, for the first time ever, and was surprised to find that both my UK brokers wont let me. Is this something I can only do with spread betting or are my brokers very basic. Anyone know if i can do this with IB on US shares.

cheers

Peter

Whos ur broker my friend..................r they or u in deep slumber......

 

[roguetrader]

In order to short with a brokerage firm you need a margin account and yes you can short with IB

 

[deepete]

I`ll disregard the slumber comment, my brokers are iweb and comdirect, and IB answered me back saying i cant bet against the box, whatever that means???

 

[bigtimetrader]

Yes, in order to short you must have a margin account.

However there is another factor. The other part is that the stock must also be on your brokers short list for that day. In order for you to go short, you are always borrowing against someone elses long position. This borrowed stock can be held by another account at the same clearing firm or a clearing firm that they have a reciprocal borrowing agreement with.

There will definitely be occassions when one broker has a stock shortable and another does not. Gerneally speaking, it doesn't really matter too much which broker you use, because most of them use the same few clearing firms or their clearing firms reciprocal relationships are likely similar.

 

[deepete]

thanks Bigtime and Rogue Traders, I/B gave me the wrong info as apparently they thought I meant buying and shorting the same stock. Bigtime, isnt that how all markets are made, to be buyers there must be sellers and vice versa

Peter