I don't even care to post on "the other board" anymore. It takes some infantile punk 10 seconds to create a look alike name and post some absurd response or post to redicule a valid discussion.
So my question to you here is, and I am a very novice trader, I am under the impression that if you short the stock, you typically do so with borrowed money in a margin account. If that's the case, wouldn't a significant price increase at this time derail anyone planning to use warrants to cover those short positions since the warrants cannot be exercised yet.
Example:
If I shorted last week at $4 and change, and the price has increase well over 30% since then, I would expect the house holding the shorts to issue a margin call on these positions. The short trader cannot just close the trade by exercising his warrants yet, so how does this play into them using warrants to short without experiencing some significant hits trying to keep the broker happy?
Thanks in adavance, and I apologize if this is a totally naive question.
