How can SPDRs and MidCap SPDRs be sold short?
Since they are listed as stocks, both SPDRs and MidCap SPDRs are eligible for short sales (selling borrowed shares on the expectation that the price will fall). You should contact your broker regarding initial and maintenance margin requirements. Short sellers of listed index shares have an additional advantage: SPDRs and MidCap SPDRs are not subject to the “uptick rule” that applies to stocks, meaning they can be sold short regardless of which direction the price is moving, and they are eligible for immediate margining under the same terms that apply to common stocks. Note that investors are required to make arrangements to borrow securities before selling short.
