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For a brokerage managing short position risks are exactly the same as managing long positions. And the implementation is the same too. Do real-time checks and o
by steven2012 7y ago
For a brokerage managing short position risks are exactly the same as managing long positions. And the implementation is the same too. Do real-time checks and once a position has lost more than X%, sell the position immediately.
The biggest problem presumably for Robinhood is managing the borrowing of the shares. They're probably not large enough to have a pool of shares to consistently borrow from like other larger brokerages.