A good read - by below shorts are shitting their pants as I...

A good read - by below shorts are shitting their pants as I write.

https://www.quora.com/What-happens-when-youre-shorting-a-stock-and-it-gets-halted-by-the-SEC-Would-there-ever-be-a-situation-where-your-broker-needs-you-to-cover-but-you-cant



When a stock is halted by the SEC (Securities and Exchange Commission), trading in that stock is temporarily suspended. If you have a short position in the stock that is halted, you would not be able to close out your position until trading resumes.

In most cases, if you have a short position in a stock that is halted, your broker would require you to maintain the position until trading resumes. This means that you would not be able to buy back the shares and close out your position until trading resumes.

If you are unable to cover your short position when your broker requires it, you could face a margin call. This means that you would need to deposit additional funds into your account to meet the margin requirements of your short position, or your broker may close out your position to limit potential losses.

There may be situations where you are unable to cover your short position, such as if the stock price rises significantly or if the stock is halted for an extended period of time. In these cases, you may be at risk of incurring losses, and it is important to have a plan in place to manage your risk and protect your investments.

It is also important to work closely with your broker and follow their guidance to ensure that you are meeting your obligations and maintaining compliance with regulations