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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.


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