borrow fees at Interactive Brokers

E

elite1974

If you short a stock that has a borrow fee, when does the borrow fee occur?

a) when you place the order?
b) when you execute the order?
c) only if you hold the position overnight?
 
In general, a fee for shorting not held overnight would be called a Locate fee. A short borrow fee refers to holding that short overnight, where you sold stock you did not own and your clearing broker, to make good delivery to the buyer, needs to loan you stock. Those fees are typically charged from settlement to settlement. We charge that fee each night after settlement, but some brokers might aggregate that charge with a monthly process.
 
I am curious how interactive brokers does it, you are saying "c", can anyone confirm?

I ask because e-trade does it when you put the order in, "a", which is strange.
 
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