newjoWith respect to shorts on TIM, this is what happens if and...

newjo
With respect to shorts on TIM, this is what happens if and when TIM goes bust (my understanding)

- let's say TIM get delisted at 5 cents. Well, at that point your CFD provider will ask for 100% margin for the amount of shorts time 5 cents. This may already be happening with some providers who borrow stock as opposed to market makers
- Your 100% face value margin is then tied for a long time (could be 7 years); Your CFD provider might facilitate matching with longs and shorts e.g. you may have to pay 1 cent to buy back your short rather than wait 7 years for full oayout based on zero value for equity.

In theory, buying one TIMPB at 10 cents and shorting 4 TIM at 7 cents is a good trade. But there can be complications