Short Sale Cost

Short Sale Cost

Calculating the Cost of Borrowing Stock at Interactive Brokers

There are two factors for daily cost/revenues associated with short selling of stocks and bonds at IBKR:

  • Borrow Fee
  • Short Sale Proceeds interest you receive from IBKR

Cost to Borrow USD, HKD and EUR Stock Examples1

Symbol Name Short Position Value
AAPL
Apple Inc
USD
MUB
iShares National Muni Bond ETF
USD
USD
Symbol Share Price Quantity Collateral Mark Collateral Value Borrow Fee Rate Borrow Fee Amount (Daily) Short Sale Proceeds Interest Rate Short Sale Proceeds Interest Amount (Daily) Net Rebate Rate Interest Accrual (Daily)
AAPL
MUB
Totals and WAVG Rates

Key:

General Collateral stocks are highly liquid securities readily available to borrow and lend in the Securities Lending market. Note: General Collateral stock may become Hard-to-Borrow due to changing market conditions.

Hard-to-Borrows are securities that may not be readily available to transact in the Securities Lending market due to factors such as low liquidity, elevated demand for borrow, heightened volatility or regulatory restrictions.


Interest Paid to You on Short Sale Proceeds Cash Balances2

For the purposes of crediting interest on cash equal to short stock collateral values, only accounts with Net Asset Value (NAV) exceeding USD 100,000 will be eligible to receive credit interest on these cash balances.



Balance

Pricing Plan:

BM = Benchmark Rate
Currency Tier Rate Paid: Rate Paid:
USD 0 - 100,000 0% 0%
100,000.01 - 1,000,000 4.080% (BM - 1.25%) 3.080% (BM - 2.25%)
1,000,000.01 - 3,000,000 4.830% (BM - 0.5%) 3.080% (BM - 2.25%)
3,000,000.01 + 5.080% (BM - 0.25%) 3.080% (BM - 2.25%)
AUD 0 - 150,000 0% 0%
150,000.01 + 1.997% (BM - 2.25%) 0.997% (BM - 3.25%)
CAD 0 - 130,000 0% 0%
130,000.01 - 1,300,000 3.293% (BM - 1.75%) 2.293% (BM - 2.75%)
1,300,000.01 - 3,000,000 3.943% (BM - 1.1%) 2.293% (BM - 2.75%)
3,000,000.01 + 4.143% (BM - 0.9%) 2.293% (BM - 2.75%)
CHF 0 - 90,000 0% 0%
90,000.01 + 0.000% (BM - 2.25%) 0.000% (BM - 3.25%)
EUR 0 - 90,000 0% 0%
90,000.01+ 1.777% (BM - 2.25%) 0.777% (BM - 3.25%)
GBP 0 - 80,000 0% 0%
80,000.01+ 3.009% (BM - 2.25%) 2.009% (BM - 3.25%)
HKD 0 - 780,000 0% 0%
780,000.01 1.803% (BM - 2.25%) 0.803% (BM - 3.25%)
MXN 0 - 2,000,000 0% 0%
2,000,000.01+ 8.022% (BM - 4%) 7.022% (BM - 5%)
SEK 0 - 900,000 0% 0%
900,000.01+ 1.710% (BM - 2.25%) 0.710% (BM - 3.25%)

Disclosures

  1. Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations or solicitation for a particular course of action, service or product. This information is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives, and requirements and, if required, seek professional financial advice before making any financial decisions.

    This page does not consider all fees that might be applicable to your transaction and you should not rely on it to assess the total charges you may pay. Borrow fee rates and short sale proceeds are calculated based on settled stock positions. Costs for borrowing certain stocks may be elevated due to supply and demand dynamics in the Securities Lending market. Please note, these dynamics may lead to negative rebate rates if the borrow fee rate exceeds the short proceeds interest earned. The rates displayed on this page are for illustrative purposes only and are subject to change.

    Past performance is not a reliable guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest.

  2. For balances held in JPY or RUB, IBKR may apply an effective negative rate to long balances held. The negative rate applied to accounts holding these currencies is the same regardless of account size. For other currencies in which the effective rate is less than zero, the interest paid is 0%.

The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Options are not suitable for all investors. For more information, read the "Characteristics and Risks of Standardized Options".

Your capital is at risk and your losses may exceed the value of your original investment.

Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Reference Number 208159.

Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC (www.sipc.org) compensation scheme;
products are only covered by the UK FSCS in limited circumstances.

Before trading, customers must read the relevant risk disclosure statements on our Warnings and Disclaimers page.

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