Short stock interest

[ChrisMMM]

if you brokerage says they pay you 1% for short stock interest, and you will pay 3% interest on borrowing money


So if you hold short stock do you gain 1% or do you initally pay 3% and then get credited 1% for a net pay of 2%?

Thanks

 

[daves2074]

yes, that sounds right. but best to check with your broker.