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Got it, thanks. Do brokerages charge interest rates for allowing shorts to borrow the stock?
by pyoung 13y ago
Got it, thanks. Do brokerages charge interest rates for allowing shorts to borrow the stock?
- revelation 13y agoolympus actually misunderstood me, and you were spot on :) Brokers do charge interest rates and the rates for TESLA really were 45% (current) and 85% (once upon a time) annualized, mostly because of a deficiency in available shares. At that point it was costing 60c per share a week just to keep your short position. Theres plenty of discussion here: http://www.teslamotorsclub.com/showthread.php/15183-Cost-to-Borrow-Tesla-Shares-for-Shorting-Hits-85 http://www.teslamotorsclub.com/showthread.php/15183-Cost-to-...
- olympus 13y agoOh, wow. With numbers that high it never crossed my mind that you were talking about loan interest. Normally the interest you pay to short a stock is single digits, and if you have enough money it can be <1%. I was thinking of this: http://www.investopedia.com/terms/s/shortinterest.asp http://www.investopedia.com/terms/s/shortinterest.asp You can see the short interest in TSLA here published twice a month: http://www.nasdaq.com/symbol/tsla/short-interest http://www.nasdaq.com/symbol/tsla/short-interest which is very high compared to AAPL's short interest: http://www.nasdaq.com/symbol/aapl/short-interest http://www.nasdaq.com/symbol/aapl/short-interest which hovers around one day to cover.