Typical length of a short position ?

What is the typical length in time of a short position?

I've never looked at such figures, but logically it's shorter than the average long position, given there are very few true long-term, sell-and-hold bears. It's much more trade/trend oriented.


This may be a naive analysis - but it seems to me you can't really do any long term damage to a stock by shorting it, because don't you have to close the position out fairly soon, like, in months, not years?

I'm not sure that this is the reason damage is avoided. The real reason is it provides steady, balanced, downward pressure to help reduce eratic price swings.


This would mean your sale is matched by a buy order at some point a few months later

That's the problem with naked shorting--rules against naked shorting should be enforced. banning short selling altogether scares me.


- so the downward pressure on the price you exerted at one point must become an upward pressure.

yes, if the shorted shares actually existed.

What are the margin requirements for shorting a stock?

I would guess this is broker-by-broker. I'm not sure what SEC requirements are. I've shorted with as little as $2000 in my TDAmeritrade acct. I've got good credit with them--no margin calls, etc.


What if the original owner of the stock wants to sell it? Can he demand you close the position?

No.

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Typical length of a short position ?

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Oh, about two inches, I'd say....

i've never had a call to cover, but i don't short sell much. i would assume it would be under principles similar to margin calls, since you're on borrowed shares (analogous to borrowed money)

They would give his back and borrow some others I'd think but I'm just a country boy. I've shorted abit in the last yr. or 2 and this has never come up.