New To TradeZero Canada: Shorting Stocks Under $1

November 21, 2025

New To TradeZero International: Shorting Stocks Under $1

Introduction

In the ever-evolving world of trading, flexibility and innovative tools are keys to unlocking potential. We're excited to announce our latest new feature that allows traders to short stocks priced under $1, providing you with an opportunity to leverage market movements even with smaller investments.

What is Short Selling?

Short selling is a trading strategy that involves selling a stock that the trader does not own, with the intention of buying it back later at a lower price. This technique is often used to capitalize on anticipated market declines and is a popular strategy among experienced traders.

Why Short Stocks Under $1?

Shorting stocks under $1 USD presents several advantages:

  • Low Entry Barrier: Engage in the stock market without a significant upfront investment.
  • Potential Returns: Benefit from volatility in lower-priced stocks.
  • Diversification: Add another layer of strategy to your trading portfolio.

Key Requirement: $2.50 USD Per Share Margin

Before shorting stocks under $1, ensure you meet the $2.50 USD per share margin requirement. This means that for every share you short, you must have at least $2.50 USD in margin available in your account.

Example:

If you short 1,000 shares of a stock priced at $0.80 USD, you need $2,500 USD in margin (1,000 × $2.50 USD), not $800 (1,000 × $0.80 USD).

This requirement helps limit risk, as low-priced stocks tend to be highly volatile.

How to Start Shorting Stocks Under $1 with TradeZero

Getting started with shorting stocks under $1 USD is simple:

  1. Open a Trading Account: Open and fund an account with us today.
  2. Research Your Options: Use our tools to find stocks under $1 USD.
  3. Execute Trades Responsibly: Always consider the risks and have a clear strategy.

Risks and Considerations

While short selling offers great potential, it's important to understand the risks:

  • Market Volatility: Stocks under $1 USD can be highly volatile.

Our new feature is designed to empower traders like you by providing more avenues to engage with the market. Whether you're looking to expand your trading strategies or just starting out, shorting stocks under $1 could be a valuable addition to your trading toolkit.

Start Your Journey Today

Ready to dive into micro-cap trading with minimal upfront investment? Sign up today and explore the exciting opportunities with shorting stocks under $1 USD.

Disclaimer

TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of the Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF), is a subsidiary of TradeZero Holding Corp.

TradeZero Canada offers self-directed electronic securities trading to its customers. TradeZero Canada does not provide financial or trading advice and does not make investment recommendations to its customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference. There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors only since it is possible to lose more than your initial investment. Short selling is extremely risky and can potentially lead to unlimited losses.

Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risks of Standardized Options, also known as the Options Disclosure Document (ODD) at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document before deciding to engage in options trading. If you have any specific questions about TradeZero Canada's brokerage services, please reach out to customer support.