I'm just curious.. I don't believe Retail traders can short the OTC stocks, otherwise please name the broker who lets you..
Thanks in advance.
Sentiment: Strong Buy
You can not short, but you can borrow from someone you know through your broker with very small fees. If you and I have the same broker, and you have 20,000 FNMA and you have no plans to sell for one week. I can borrow by filling a transfer loan form. You loaned me and I will give you back when you need. In return for 10,000 shares I will give you $50 -100 for one week.
Stock is just a book entery, small brokers sell your stock based on software called Anitcpated Software, which predicts you will sell if the. stock drops 10%.
Just talked to SureTrader, they said they will let you short OTC stock if they can find a borrower.
I specified FNMA, and the rep said that they currently DO NOT Short FNMA as there are no borrowers out there..
I'll try Interactive Broker next
that is funny sure trader has no clients that own fnma or fmcc that a short seller can borrow?
A short seller borrows the shares than sells on open market then to get out of the trade he buy`s to cover or give back the shares he borrowed.
there is no way a rep from suretrader told you if they can find a borrower ,the short seller is the borrower
Just asked Charles Schwab and was told currently you cannot short FNMA.
I guess these people that think you can are the same people that think there are paid bashers. Which makes them absolute idiots or people with an agenda taking advantage of the uninformed.