# QT short position forced cover

Visibility: Public
asked Apr 06, 2018 03:07 PM by

Hi Jin:

Today, with very limited notice, shares of my Tesla short position were recalled by Questrade. Fortunately I didn't lose much at this price, but they are charging me a $45 fee because I didn't see the email in time. I had sufficient margin in my account. Do you know what's happening and did this happen to you? Edit Retag Close Delete #### 1 answer sort by » oldest newest most voted answered Apr 06, 2018 03:21 PM by I inquired to them with an email and this is what they said: "As per the REG SHO rule if Questrade was unable to borrow shares of TSLA for you to hold the SHORT position overnight, you would be required to cover your position by 3:45pm on the day you receive this notification. We try to borrow shares till 3:00pm, however if we are not able to borrow we send you the notice. This is the reason why it was sent out at 3:14pm." I understand this is a risk of shorting, but I thought that in practice it was pretty rare for shares to be recalled. I'm damn lucky that I lost less than$50.

I'm sorry to hear that this happened to you. Demand to short TSLA is off the hook these days, so it's perhaps not surprising that this happened now.

( Apr 07, 2018 08:23 AM )edit

Yeah, fortunately they didn't charge me the \$45 fee. Now I'm hesitant to short Tesla again with them--you could lose a lot of money if the timing was bad.

( Apr 07, 2018 11:23 AM )edit