How do you short a freshly minted IPO stock? There’s not that much float and there are so many regulatory hurdles for shorting right after an IPO, that most retail speculators would not have access to those limited shares in a meaningful quantity. How did you folks that said your shorted right after Snap went public did you manage to pull it off? What brokerage firm did you use that were allowing you to short right after an IPO?
And I don’t think you pay 18% interest just from shorting unless you the short position blew up, the stock price went up past your short price AND you don’t have enough money in your account to cover the paper loss. That difference between what you shorted at , and the current market price (which is higher) is like a margin loan.. At least that’s how my broker works. I never had to pay margin interest when I was on the right side of a short. And even when a short position had a loss, so long as I had enough cash in the account to cover that unrealized loss, there was no margin interest charges too.
