short euro stocks + warrants question

[luishk]

Hi

I'm trading with IB, mostly US markets and various indices but also some european single stocks.

I encounter a couple of issues on eurostocks which might be solved with warrants but am not familiar with those at all.

Most times when i'm interested in going long or short european options, I need to give up because of lack of liquidity and high commission prices, the issue of taxes upon assignment doesn't help.

Also the little shares available to borrow to short eureopean stocks (and sometimes american as well) makes it difficult to simply short CFDs or stocks. I might enter a largish position sometimes, over 1mil overnight and a couple of times that amount intraday. Anyone here trading warrants ? Would they be a better choice ? How else would you advice on going short european stocks, I don't like the liquidity on options, but I'm afraid it's even worse with warrants.

Thanks in advance

 

[timsk]

Hi luishk,
I see you've been a member for a while - but this is your first post - welcome!

I wish I could answer your question or, failing that, point you in the direction to someone who can. My guess would be - and this is just a guess - that if the stocks themselves aren't available to short, then trading any derivative product (be it CFDs, warrants or anything else) will prove to be tricky, if only because your broker will experience the same issue when they try to hedge their exposure in the underlying market. Your best bet might be to look at an inverse ETF perhaps?

Just a thought.
Tim.