No, however, stock loans are secured by posting collateral in the form of cash or other securities. As the stock price increases, the collateral required to support the value of the stock loan also increases... ie a margin call. If the borrower cannot supply additional collateral, then the short position must be covered and the securities returned. You sometimes see shorts get squeeezed out of their positions because they have insufficient assets to satisfy margin calls.
The value of the short position also gets larger as the stock price rises, and that can trigger things like risk limits for hedge funds that like to bet on things as well, which can push prices higher as they cover to take some risk off. Shorting definitely something for the sophisticated and highly attentive types.
- Forums
- ASX - By Stock
- How to Loan out shares on ASX??
No, however, stock loans are secured by posting collateral in...
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MSB (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.09 |
Change
0.015(1.40%) |
Mkt cap ! $1.238B |
Open | High | Low | Value | Volume |
$1.08 | $1.10 | $1.07 | $3.013M | 2.779M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
17 | 48086 | $1.09 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.09 | 6034 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
14 | 50811 | 1.085 |
15 | 105946 | 1.080 |
11 | 185379 | 1.075 |
14 | 548617 | 1.070 |
7 | 87325 | 1.065 |
Price($) | Vol. | No. |
---|---|---|
1.090 | 25853 | 7 |
1.095 | 111469 | 19 |
1.100 | 189996 | 23 |
1.105 | 103599 | 13 |
1.110 | 143484 | 11 |
Last trade - 14.30pm 21/05/2024 (20 minute delay) ? |
|
|||||
Last
$1.09 |
  |
Change
0.015 ( 1.89 %) |
|||
Open | High | Low | Volume | ||
$1.09 | $1.10 | $1.07 | 522494 | ||
Last updated 14.49pm 21/05/2024 ? |
Featured News
MSB (ASX) Chart |
The Watchlist
ATC
ALTECH BATTERIES LTD
Martin Stein, CFO
Martin Stein
CFO
SPONSORED BY The Market Online