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To: stylin19a

how long can they hold the short position before they have to cover ?

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The broker will mark to market the short trade position every trading day when the market closes.

If the prices of the shorted stock goes down the broker will make a margin call of enough cash or collateral on deposit to make up the difference between selling price & actual market price

So the short seller can keep the position open indefinitely as long as he has enough cash or collateral to cover the margin


1,666 posted on 07/18/2024 11:32:27 AM PDT by thinden (buckle up ....)
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To: thinden

nice explanation...thanks...


1,667 posted on 07/18/2024 11:33:20 AM PDT by stylin19a (Why does "slow down" and "slow up" mean the same thing?)
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