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Buy-In
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(1) When a call is exercised against an option writing account that does not hold a sufficient position in the called security, the broker may buy in the necessary position for delivery to the option holder. (2) In short selling, if no securities can be borrowed to continue a short position, the broker will buy in securities for delivery, forcing the short seller to cover. This type of buy in occurs in issues with large short interests and/or small floats.
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