Wouldn't that depend on the terms offered by the broker for shorts by the retailer?
Or are all brokers required to give the same terms and conditions for short trades? For instance the available margin varies quite a lot I understand. Depending on the broker, duration, and security or commodity involved.
All brokers would offer different terms and conditions but the end result would be the same if a stock went to 0. A company might go bankrupt but you won't. Your scenario would only apply to anyone on margin with a long position. The only problem being short would be it might take a while before your position is finally closed and you get your money, which is why some would cover if they see it coming. I think some brokers can close out your position in that situation but they would have to be pretty rotten IMO and you wouldn't trade with them again.
I never had any position in FGE and yes I do trade CFDs but there is very little difference. You are correct about CFDs not directly effecting price movements. Margin rates/fees do vary greatly and I only know the rates for IG.
LYC Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
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