WBT 3.27% $2.96 weebit nano ltd

i understand asx limits shorting to institutional level and i...

  1. 1,726 Posts.
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    i understand asx limits shorting to institutional level and i presume they would be required to maintain margin i.e ability to cover. the sbl agreement, like any other loan agreement would have sufficient protection and maybe even collateral obligations . ..

    i dont know specifically but at this end of the market there would be multiple safeguards in place so do not feel we need ro fear stock borrowers / shorters ability to return stock.

    if the stock starts to run this is where we might see the rats fleeing the sinking ship i..e they will want to close out their position asap before others start . . which drives price up . . which causes other shorters to either want to (or their risk management departments force them) to close out . . which causes price to rise further . . risk with shorting . . there is potential to lose multiples of original capital.

    with a tight register and a huge short position this could create a massive rerate i.e. new all time highs imo.

    either way i am here for the long term but it is going to be fun to watch.

    one thing i know for sure . . i would not want to be short right now for anything!!!!
    Last edited by Harmattom: 15/12/23
 
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