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Irnbru


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!

contango_and_cash


Total Posts: 141
Joined: Sep 2015
 
Posted: 2021-06-23 18:33
What are you short?

Irnbru


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

nikol


Total Posts: 1385
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.

https://www.interactivebrokers.com/en/?f=%2Fen%2Fgeneral%2Feducation%2Fpdfnotes%2FWN-UnderstandingIBMargin.php%3Fib_entity%3Din

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