Hacker News new | ask | show | jobs
by steven2012 2528 days ago
For a brokerage managing short position risks are exactly the same as managing long positions. And the implementation is the same too. Do real-time checks and once a position has lost more than X%, sell the position immediately.

The biggest problem presumably for Robinhood is managing the borrowing of the shares. They're probably not large enough to have a pool of shares to consistently borrow from like other larger brokerages.