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What will happen in this scenario and how can you mitigate it?
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Gabriel Tham
31 Mar 2020
Tag Team Member at Kenichi Tag Team
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If you did a naked short, you will be penalised according to the naked short selling regulations as you did not do a buyback.
If you shorted using CFDs, you continue to pay interest on the short position margins till the position is closed.
You can try contacting your broker to see if they can close the position for you.