What is borrowing fees ?
- Thread starter cashclay
- Start date
Don't short the stock, instead buy a Put option.
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.
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.
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!
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
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.