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Total Posts: 3
Joined: Apr 2021
Posted: 2021-06-22 16:03
Hello all,

Apologies for the basic question.

I am currently in a short position with very little to no inventory available. If the inventory declined further how is it decided which shares are forced to cover? Is it done based on who has been shorting the stock for the shortest time or a random lottery process?

I am using IB.

Thanks for the help!


Total Posts: 142
Joined: Sep 2015
Posted: 2021-06-23 18:33
What are you short?


Total Posts: 3
Joined: Apr 2021
Posted: 2021-07-01 20:23
Could use some help with my question first before I disclose it.


Total Posts: 1457
Joined: Jun 2005
Posted: 2021-07-05 13:14
Any broker is monitoring every client disregarding others. That means, that
1. if your position is expected potentially to lose money FOR THEM, they are going to reduce that exposure, which means reduce your specific position.
2. If you think about portfolio strategy then it is wise to create subaccount, within this one apply for "Model Portfolios" and stay within the limits.

Go through IB margin description.

... What is a man
If his chief good and market of his time
Be but to sleep and feed? (c)
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