1. Even if the price has not moved against you, your broker can decide the stock has become more volatile, and therefore a higher collateral ratio is required.
2. Regulators can halt trading, making it at least temporarily impossible to buy back the shares and book your profit on the short sale.
Hence FTA: “You never short something thinking it will go into receivership,”
1. Even if the price has not moved against you, your broker can decide the stock has become more volatile, and therefore a higher collateral ratio is required.
2. Regulators can halt trading, making it at least temporarily impossible to buy back the shares and book your profit on the short sale.
Hence FTA: “You never short something thinking it will go into receivership,”