Short selling in Moomoo Financial Singapore Pte. Ltd. means that you borrow securities from Moomoo Financial Singapore Pte. Ltd. with cash or securities as collateral, buy the same amount and kind of securities at a certain time in the future, and pay certain interest and service charges to Moomoo Financial Singapore Pte. Ltd..
Customers with short positions may face the risk of forced liquidation at any time without prior notice. This is the inherent risk of short selling and is usually not controlled by the customer.
When facing the risk of liquidation, the customer needs to close some or all short positions, otherwise, he/she may face the risk of forced liquidation at any time, which is usually caused by the following two situations:
The settlement date of U.S. securities is the second working day after the transaction date (T + 2). When short selling stocks, it is impossible to ensure that the stocks that can be borrowed on the transaction day can still be borrowed after two days. If there are no stocks available for borrowing, the short position will be forced to close.
Once the short sale is settled, the holder of the stock has the right to recall the stock at any time. In the event of a recall, short positions will face compulsory liquidation.
The borrow rate for short selling is only a reference value during trading and may fluctuate according to the stock lending market. The actual rate is indicated in the statement. Please check it.