Hard-to-Borrow Stocks and Fees:
When any stock is sold short, the shares must be located and borrowed by a clearing firm. When there is a large demand to short a stock relative to the number of shares outstanding, stocks can be classified as hard-to-borrow. The market forces that drive increased demand for a stock vary daily depending on the particular situation.
For this reason, the fees associated with hard-to-borrow stock can vary greatly as it is based on the amount of market demand each day. We suggest that if you wish to short hard-to-borrow stock that you contact our Trade Desk at 877-653-2500. We can help you locate the stock in question and notify you of the availability and current fees.
Please Note: Some stocks will not appear as hard-to-borrow and are able to be sold through the platform, but still may incur hard-to-borrow fees. This occurs when a particular stock is able to be located and borrowed, however the limited availability of shares mandates a borrow fee. In these cases, the investor will incur fees each day that the stock requires a fee to be borrowed.