"No they can put up the money to the tune of 150% of the price of the stock. So that means if they short a stock at $1.00 they have to put up $1.50. So if the stock goes to $2.00 they then have to come up with $3.00 a share which means they have to put up another $1.50 per share. and so on and so on. Which is why when some people complain about shorting a stock st a dime it doesnt make much sense. Best you can do is for the stock to be delisted in which case they have made .10 per share. But if it goes to a buck OUCH"

If you sell 1000 shs. of QEC short at $4.00 you then have a credit of $4,000. in your a/c. You are required to put up only $2,000. because the total credit in your a/c would then be 150% of QEC's value of $4,000. If QEC then went to $5.00 you would need to put up additional $1,500. to get the credit in your a/c up to $7,500. which is 150% of $5.00. If QEC went to $3.00 you could take out $1,500.

Regards

Joltin