when you sell a stock short, does the brokerage deposit money in your account?
An Anonymous User asked:
Or is the money you receive from selling offset by the stock you borrowed? And how much cash or margin will the brokerage want in case the price rises?
The cash is deposited, but it’s held as security for the shorted stock. You usually have to put up more cash than the value of the position. The amount depends on the type of security.
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