When you sell stock short,you must put up some collateral.

Name: When you sell stock short,you must put up some collateral.
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When selling a stock short, a broker will require the investor to put up collateral in the form of cash or securities in order to cover any potential losses if the stock price goes up instead of down. This collateral is often called "margin" and is typically a percentage of the value of the short sale.

When You Sell Stock Short,you Must Put Up Some Collateral