Short Selling Crypto Currencies

Short Selling CryptoCurrencies

So lets see your getting ready to invest and just as an example your picked ripple as an appropriate short selling candidate and again hypotheicaly their accounting shenanigans are poised to catch up to them.

Markus Dinkus decides to short 1000 shares of the cox100mpany which lets say is currently trading at 50.00 dollars. 

Short Selling Stock or Cryptocurrency

Here is what I do

1. Markus dinkus places the short sale order through his trading account or advisor. he must declare the short sale as  such when enterent the order since an undeclared short sale amounts to a violation of the securities law (in stock anyhow)

He would also need to ensure that he has a minimum of 25,000 dollars (50% of 50 x 1000 shares) as initial margin in his margin account prior to making the short trade.

2. you can attempt to borrow the shares from a number of sources- this requires a person to have reasonable grounds to believe the security to be shorted can be borrowed, do that it can be delivered to the buyer on the date its delivery is due.

3. once the shares have been borrowed or located the will be sold in the market and the proceeds can now be deposited

If you have any questions you can email me or leave a comment