Ideally, you would never short.
Does one have to cover before the bankruptcy is official? Can one cover after in the link sheets?
Yeah but if you're paying a fee to borrow that eats your returns. I'd cover when they bottomed out at 1-3c (or whatever) unless long term status was not far away.
Why would the stock owner lend you their stock if they weren't being compensated?https://www.fidelity.com/learning-center/trading-investing/trading/about-short-selling"Borrower pays interest to Fidelity while position remains open"
Quote from: Richard3 on December 02, 2013, 12:51:55 PMWhy would the stock owner lend you their stock if they weren't being compensated?https://www.fidelity.com/learning-center/trading-investing/trading/about-short-selling"Borrower pays interest to Fidelity while position remains open"I did it for years with Fidelity (2000-2006) without ever paying a fee. Maybe it was comped for having a certain account size or trading like a hypercaffeinated bunny.