How this number is made
The borrow fee is what a short pays the lender for the shares. This page uses a 360-day year, which is the usual stock-loan quote, times the days you hold the borrow. A rebate on the cash collateral can offset it. That rebate is not subtracted here unless you lower the fee yourself. The fee can change overnight on a hard-to-borrow name.
- The fee is the annual percent quoted by the desk, not the rebate.
- Market value should be updated if the price has moved. This page uses the value you type.
Formula
Fee = market value × annual rate × days ÷ 360.
Worked example
With the figures already in the form, borrow fee is $41.67.
Questions
What is a rebate?
Interest you may earn on the cash posted against the borrow. A negative rebate means you pay both. Type a net fee if you want both in one percent.
Why 360 days?
Stock-loan fees are usually quoted that way. A 365-day count would make this a little smaller.