papads
3 posts
msg #70697
- Ignore papads |
1/15/2009 6:48:10 AM
Hi All,
I have been short 100 shares of SXT for since January 8th. Yesterday I was contacted by my brokerage and told the following:
This is a notification of a buy-in execution for (SXT) 100 shares. If you choose to cover the short position on the market, a cash trade is required (same day settlement) otherwise you will still be liable for the buy-in until the settlement date. You have until January 14th, 2009 or (Brokerage Company) may execute a Buy-in against, or pass a buy-in along to this account"
I am not really to sure what this means. Is this the same as a stock being "called away"? I closed my position, but I am still not sure what would have happened if I didn't? Can someone help to explain this for me. I'm just not sure if I'm open to some additional risk here that I don't understand.
Thanks in Advance.
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jimhbutton
104 posts
msg #70814
- Ignore jimhbutton |
1/20/2009 10:05:34 PM
Call them up and get it directly from the horse's mouth. Something similar happened to me last year and I was on the horn with them ASAP.
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SFMc01
358 posts
msg #70823
- Ignore SFMc01 |
1/21/2009 9:26:23 AM
I've never heard of this.
When you find out, please share with all of us what this all means?
Thanks ... Steve
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13th_floor
724 posts
msg #70839
- Ignore 13th_floor |
1/21/2009 6:59:57 PM
It's really simple.
It means your broker can call back any stock you have a short position in at any time.
At the time of your short they had an inventory of shares available to short,now they don't..
If you don't close your position,they will or maybe they won't since it can change hour by hour/day by day.
No big deal really if you are into shorting as I am.
If you don't want to close the position,just let them do it or see if they don't
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SFMc01
358 posts
msg #70862
- Ignore SFMc01 |
1/22/2009 3:18:48 PM
Thanks 13th.
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