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21-27 of 27
Hi iPunter & terencee, thanks for you information and advices. It's seem very risky to do Shortselling. Sure I will not dare to risk it as a beginner. Especially using my hard earn $. Will take your advice.:). At least now I can understand what is that Shortselling option for:). One more question, in the online trade if I click on sell option instead of Shortselling but I also don't own any shares is it also the same as Shortselling? And penalty also the same as shortselling if i dont buy back on the same day at low price? Thks in advance. I just want to have a better understanding as a beginner. :)
Do not itch to do high-diving before you have even learned to tread water...
No offence meant... but I think this is the most valuable advice you can get...
the 1 time penalty per day per counter.
Plus a secondary penalty of buying back your shares at 3 bids higher than market closing on the day or the closing price for the counter 3 days later(which ever is higher).
That means if you don't know what you are doing, do not short. The losses is terrible.
The fine is not a one-time penalty. You get fined every time you do that (per transaction). If you do it every day, or more than once per day, you will be fined more than $1k..
You must contact your broker immediately if you have clicked by mistake.
beginners ( Date: 22-Mar-2013 12:19) Posted:
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Hi terencee, thks for your reply. You mean as long as I don't cover back buying the $1000 is penalty by per day? Or only one time charge? Is the penalty of $1000 regardless of the amount or $$ you sell without having owning any shares? Thks in advance :)
selling shares you don't own. But have to cover back at the end of the day or else there will be a $1000 penalty
beginners ( Date: 22-Mar-2013 11:30) Posted:
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Hi I notice my online trade software apart from Buy & Sell selection now got one more option which is Shortselling. May I know what's mean and how it works? Appreciate any experts here can explain to me how it works. Thks in advance:)