I have 10,000 shares on my long term hold account and 2,500 shares in my short term trading account. I am not interested in calling Schwab for this because I know about shorting stocks, I know it from personal experiences. I have long positions in many stocks and I short stocks for profit too. Today I have lots of short positions in real estate, mortgage and bank stocks.
You are full of shit. I have 2 Schwab accounts with GRMN in both, one for long term hold and the other is for short term trading and I didn't receive this offer for either account. If you play with margin account with a long position, they charge you interest, meaning when you buy, you borrow cash and you pay interest. But if you short a stock, they don't pay you and you don't pay them anything. The only thing you pay the brokerage firm after you cover the short position is the dividends (if any) paid by the company to the shareholder on records while you hold onto that short position. When you short, you borrow stocks and you pay back in stocks, no cash involve here, so you don't pay anything. If the shareholder on record wants to sell his/her stocks and if the brokerage firm has no stocks on hand, they can call on you to cover and pay back the stocks. If you don't cover, the brokerage firm covers for you, they buy back those stocks in your account and you now owe them money if the cover price is higher than your short price and you keep the difference in profit if the cover price is lower than your short price.