# What brokers allow shorting (On the venture and under 1$)



## Value (Jul 31, 2015)

Hello, 

I would need some help, if anyone knows of the options out there with the various brokers available to Canadians...

All in all, I would like to be able to SHORT any stock... 

Currently with Scotia and don't 1-Don't allow any short under 2$ and 2-Don't allow any shorts under the Venture exchange...

I know TD allows shorting of stocks on the Venture, but they don't allow any shorting of stocks under 1$...

Can anyone tell me if there they know a broker that allows shorting on the VENTURE of any stock bellow 1$ in share price??

Thanks in advance all,

Value


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## Fain87 (Jan 20, 2018)

Value said:


> Hello,
> 
> I would need some help, if anyone knows of the options out there with the various brokers available to Canadians...
> 
> ...


Interactive brokers


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## james4beach (Nov 15, 2012)

Beware that not all stocks are shortable. To be able to short a stock (through Interactive Brokers or any other broker) you first need to be able to borrow the shares.

Interactive Brokers has a pretty good inventory of shares to loan you, but some stocks will still not be available to borrow at all. Penny stocks and micro caps generally will be difficult or impossible to short. Others may be available, but for a very high borrowing cost. When you borrow the shares, you pay a borrowing cost at some annualized borrowing rate and this cost can be quite high... possibly 10% to 30% annualized, for rare stocks.

Penny caps and small/micro caps are extremely dangerous to short, because their price could move by huge %s up or down. Beware that Interactive Brokers has an *instant liquidation* policy on margin calls. If the stock moves against you, leaving you with inadequate available margin, IB will immediately liquidate your holdings -- potentially leaving you with a huge loss -- beyond your control.

They are notoriously brutal in their enforcement of those margin policies. These are the somewhat subtle caveats to short selling that you must take into account.


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