Short Sale Cost
Short Sale Cost
Calculating the Cost of Borrowing Stock at Interactive Brokers
There are two factors for the daily cost associated with short selling of stocks and bonds ("eligible SB securities") at IBCE
- Borrow Fee – for each eligible SB security there is an indicative rate available on the TWS and the Client Portal
- Borrow Servicing Fee - for each eligible SB security denominated in currencies with negative interest rates we charge a fee.
| Currency | Tier | Borrow Servicing Fee |
|---|---|---|
| CHF | 0 ≤ 90,000 | BM-0.25% |
| > 90,000 | BM-2.25% | |
| EUR | 0 ≤ 90,000 | BM-0.25% |
| > 90,000 | BM-2.25% | |
| SEK | 0 ≤ 900,000 | BM-0.25% |
| > 900,000 | BM-2.25% |
Example: A Hard to Borrow Stock
Sell Short 100 of SNAP
TWS shows a Fee rate of 50.19%
Statement
Net Cost
Taking into account the Weighted Average Short Sale Proceeds Interest on a balance of USD 5,000,000 (similar to the AAPL example above) of 0.628%, the net borrow cost/revenue is -49.56%, or a debit of USD 2.48 per day.
