TradeZero America Lowers Minimum Short Price Threshold to $0.25
May 28, 2026
Summary
TradeZero America has lowered its minimum short-selling price threshold from $0.50 to $0.25. Stocks priced at or above $0.25 may now be eligible for short selling, subject to borrow availability, margin eligibility, account requirements, and risk controls.
What changed?
TradeZero America has updated its minimum short-selling threshold for opening short positions.
- Previous minimum short price: $0.50
- New minimum short price: $0.25
This update expands short-selling eligibility for certain lower-priced securities.
What does this mean for traders?
Eligible traders may now be able to short securities priced at $0.25 or higher.
This provides additional flexibility for traders participating in lower-priced and high-volatility securities.
Short-selling availability still depends on:
- borrow availability
- margin eligibility
- buying power
- account risk controls
- clearing firm requirements
Can all stocks above $0.25 be shorted?
No. A stock trading above $0.25 is not automatically available to short.
Short-selling eligibility may still depend on:
- share availability
- locate availability
- hard-to-borrow status
- risk reviews
- operational restrictions
Important low-priced security rules
Current TradeZero America rules include:
- Long opening orders are not permitted for stocks priced below $0.05
- Short opening orders are not permitted for stocks priced below $0.25
- Stocks priced below $3.00 are non-marginable
- Closing and covering orders are not affected by minimum short price thresholds
How does short locate availability work?
The number of shares available to locate and the number of shares ultimately available to short may differ because short-selling eligibility is re-checked in real time when an order is submitted.
Factors that may affect availability include:
- buying power
- margin requirements
- security price changes
- borrow availability
- account eligibility
Why are low-priced stocks sometimes restricted?
Certain low-priced securities may experience:
- elevated volatility
- reduced liquidity
- wider spreads
- increased operational risk
- settlement considerations
Restrictions and eligibility requirements may change based on market conditions and clearing firm requirements.
Related Support Questions
Why can’t I short all the shares I located?
Learn why locate availability and executable short-selling capacity may differ based on buying power, margin eligibility, and real-time borrow availability.
Are there any price limitations on stocks I can trade?
Review TradeZero America’s minimum price thresholds for opening long and short positions in low-priced securities.
What are the short locate fees?
Understand how short locates work, when locate fees apply, and how borrow availability is determined.
Why was my short order rejected?
Learn the most common reasons short orders may be rejected, including margin requirements, locate availability, and security restrictions.
How much are overnight short borrow fees and how are they calculated?
See how borrow fees are calculated and why rates may change throughout the trading day.
Disclaimer
Short selling involves substantial risk, including the potential for losses exceeding the initial investment.
TradeZero America Inc. may impose additional trading restrictions, margin requirements, or risk controls based on market conditions, clearing firm requirements, or internal risk reviews.
Borrow availability, locate availability, borrow fees, and short-selling eligibility may change without notice.