Short stock?

Question

Is it possible to short stocks if I have online brokerage account? If Yes, are there any limitations?

Do I have to use margin account only to short stock in online brokerage account? Can I use my own money in account to short?

Answer 1

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Yes.

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Yes.

(1) You must have a margin account.

(2) You must have adequate margin available.

(3) The brokerage must have shares available to lend.

Edit:

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Margin is essentially collateral to protect the brokerage against losses. If you have a margin account the total margin you have available can split between different investments, which can include a mixture of short stock sales and other types of positions that require margin.

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Yes, cash in your account can be used to meet your margin requirements for a short sale.

Answer 2

Yes you can short stock at any brokerage.

You must have a margin account.

You can always have your short stock recalled. Since you are borrowing it from someone else. So your position may close even though you are not ready to.

Look at getting option approval instread and buy puts. No margin, no recall risk.

Email if you have questions...