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TESLA - Shortage of shares to short? Increasing margins?


Guest WestGJ

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Guest WestGJ

Hi

I have read on other forums sites (not IG) that some brokers sometimes don't have enough Telsa (TSLA) shares for someone to short.

The maximum short position I have had with Tesla is is 5000 shares on the CFD platform.  I am currently short 1500 but want to build up to perhaps 15000 shares.  Is there any way for me to know if at some point in the future that there will be a shortage of Tesla shares to short?  Has there every been a shortage with IG?

My other question is regarding margin requirements for Tesla.  I know that Interactive Brokers now have a 40% margin requirement for Tesla whereas IG have the following for the first 25000 shares:

Tier    Position size (Share(s))    Margin
1        0 - 5000                              5%
2        5000 - 25000                    10%

Obviously IG have a much lower margin requirements than Interactive Brokers.  So my question is - is it likely for IG to increase their margin requirements?

Thanks

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4 hours ago, WestGJ said:

Hi

I have read on other forums sites (not IG) that some brokers sometimes don't have enough Telsa (TSLA) shares for someone to short.

The maximum short position I have had with Tesla is is 5000 shares on the CFD platform.  I am currently short 1500 but want to build up to perhaps 15000 shares.  Is there any way for me to know if at some point in the future that there will be a shortage of Tesla shares to short?  Has there every been a shortage with IG?

My other question is regarding margin requirements for Tesla.  I know that Interactive Brokers now have a 40% margin requirement for Tesla whereas IG have the following for the first 25000 shares:

Tier    Position size (Share(s))    Margin
1        0 - 5000                              5%
2        5000 - 25000                    10%

Obviously IG have a much lower margin requirements than Interactive Brokers.  So my question is - is it likely for IG to increase their margin requirements?

Thanks

Hi @WestGJ, I'm probably not the best person to answer but until someone better comes along, I don't remember anyone complaining of a shortage of Tesla shares to short but it has occasionally happened on other assets, there will be the pop up message this asset is 'unborrowable' meaning IG can't find a party to supply the shares to short. There doesn't seem to be any forward notice that this may happen.

With regards to changing the margin requirements this has happened in the past but seems to be very rare, I can only recall one instance and the main complaint was that there was very little notice but if I recall correctly the change only applied to new positions being opened. 

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