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If the stock is readily available the short fees are next to nil. Only hard to borrow securities have impactful loan fees. In the common case you get paid to sh
by koolba 7y ago
If the stock is readily available the short fees are next to nil. Only hard to borrow securities have impactful loan fees. In the common case you get paid to short as it’s a rebate on potential interest for the principal.
- bpt3 7y ago> In the common case you get paid to short as it’s a rebate on potential interest for the principal. What does this mean?
- acchow 7y agoYou're borrowing money for their shares; you can earn interest on that.
- bpt3 7y agoIf you don't mind explaining, how does this work in practice?
- NicoJuicy 7y agoYou give back shares on a later date. But sell the borrowed shares for money now. If you don't know it, don't try it. You are playing with money, you don't have.
- bpt3 7y agoThanks for clarifying, I know what shorting is but have never done it in an account where it made sense to do what the parent was suggesting.