Hertz has filed for Chapter 11
Damn. And Rickards told me to short _Avis_. Oh well.
If you are short on something and it folds? do you lose anyway?
I can never remember which it is but longs or shorts you have to make a buy to exit at market price? or both
Forgive my lack of comprehension. I probably read it here over the years and lost the fine detail.
1. When you are short, you sell for $X and hope to rebuy it at a lower price. Your profit is $X - your buy price - fees and charges.
2. If you are short something and it folds, then it is complicated because you have sold it and still have the obligation to buy it. It may have a zero value but if it is suspended from trading then you can’t buy it. Which is awkward. So unfortunately the answer is “it depends” on the terms of the trade you entered into which is probably set out in the Exchange rules.