What is borrowing fees ?

Discussion in 'Trading' started by cashclay, Aug 2, 2022.

  1. cashclay

    cashclay

    Sorry I a newbie to trading and I’m interested in shorting. min just curious to what exactly borrowing fees are and does it only apply to hard to short stocks?
    Please don’t get angry and if you can try to explain it in an easy description. Thank you so much
     
    Nobert likes this.
  2. mikeriley

    mikeriley

  3. Don't short the stock, instead buy a Put option.
     
  4. MrMuppet

    MrMuppet

    If you want to sell something that you don't own, you have to borrow it from someone. Of course borrowing is not free so you have to pay a fee for that which is the borrowing fee.

    It doesn't just apply to hard to borrow stocks but to every stock you want to borrow for shorting.

    The less of a particular stock there is and the higher demand for borrows the higher the borrowing fee will be.
     
    shuraver and cashclay like this.
  5. zdreg

    zdreg

    Easy to borrow stocks like IBM, MSFT etc. have no fees.
     
    cashclay and murray t turtle like this.
  6. tomkat22

    tomkat22

    Maybe not with your broker but IBKR always charges a minimum fee on all stocks (.25 %) Yesterday the borrow fee for HKD was 1100%. Yikes!
     
    murray t turtle and MoreLeverage like this.

  7. yeah, but in 99% of the cases you are still paying the borrow fee, though it can be a bit lower
    sorry to burst your bubble
     
  8. destriero

    destriero


    In 99% of the cases you're still r*******
     
  9. destriero

    destriero


    HTB doesn't necessarily correlate to a high vig. TSLA is hard to source and you can short the synthetic (short call/long put at a strike) within pennies of where cash is trading.
     
  10. destriero

    No , you're still r**********

    Boys,Dont listen to the nitwits here who talk out of their rear ends

    IB has these many shares to borrow. (second line) (hard to source ? lolololoolloololloolol, clown, proved )

    upload_2022-8-2_19-49-43.png
     
    #10     Aug 2, 2022