Why was I able to locate more shares than I can short sell?

TradeZero’s short list locator calculates the marginability of a stock based on the current price of the stock at the time you request the locate.

If the stock drops below $3, the stock is no longer marginable.

This may occur between the time you locate shares and the time you place a short order.

When a stock becomes non-marginable, this may reduce the number of shares you may trade regardless of how many shares you have located.

Conversely, if the stock price rallies above $3, it will again become marginable and this too may increase the number of shares you can trade.

However, please keep in mind that TradeZero does not permit shorting any stock below $1.

If the price of a stock falls below $1 between the time you locate shares and the time you place a short order, you will not be able to short the stock.

Furthermore, you will not be able to use any located shares while the stock remains below $1.

TradeZero cannot refund the cost of any shares you locate because of the change in marginability of the stock or if the stock drops below $1.

TradeZero does give you the ability to put up for credit any unused shares and if these shares are located by another TradeZero client, you can recoup up to 50% of the locate price.

You are able to take advantage of this feature until 8 PM ET.