Markets and Trading

Short Selling

Selling borrowed securities with the intent to repurchase them later at a lower price.

Definition

Permitted on Canadian exchanges subject to UMIR Rule 3.1 (declaration as a short sale on order entry) and tick-test or price-restriction rules during volatile periods. Short positions must be covered through borrowing arrangements before settlement. Short selling carries unlimited theoretical loss because the security's price has no upper bound.

Source

UMIR Rule 3.1, 3.2; CIRO IDPC Rule 7400

Where this shows up on the CIRE

Outcome 7.5

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