Hi, can anyone help me find answers to the questions?
In a short sale of stocks, the seller must pay a borrow fee every day and post a collateral to the lender. The calculation of these borrow fees and collaterals depends on the prior business day's close price.
Question 1: What day's closing price is used to determine a borrow fee for Sunday? Is it Friday or Thursday?
Question 2: Let's assume Wednesday is a holiday when there is no trade. What day's closing price is used to determine a borrow fee for Wednesday? Is it Tuesday or Monday?
Question 3: What day's closing price is used to determine a collateral for Sunday? Is it Friday or Thursday?
Question 4: Let's assume Wednesday is a holiday when there is no trade. What day's closing price is used to determine a collateral for Wednesday? Is it Tuesday or Monday?
In a short sale of stocks, the seller must pay a borrow fee every day and post a collateral to the lender. The calculation of these borrow fees and collaterals depends on the prior business day's close price.
Question 1: What day's closing price is used to determine a borrow fee for Sunday? Is it Friday or Thursday?
Question 2: Let's assume Wednesday is a holiday when there is no trade. What day's closing price is used to determine a borrow fee for Wednesday? Is it Tuesday or Monday?
Question 3: What day's closing price is used to determine a collateral for Sunday? Is it Friday or Thursday?
Question 4: Let's assume Wednesday is a holiday when there is no trade. What day's closing price is used to determine a collateral for Wednesday? Is it Tuesday or Monday?