You sell short 100 shares of a stock with a price of $50 that has a 60% margin requirement. At the end of the trade, what is the minimum amount of cash that should be in your account?

You sell short 2000 shares of ABC at $25 for 4 months. The initial and maintenance margin are 40%. What does your account balance sheet look like?

Answer rating: 100% (QA)

When you short sell a stock you are essentially borrowing the shares from your broker to sell them at the current market price hoping that the stock price will decline in the future and you can buy th... View the full answer