Short Sale Cost

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Short Sale Cost

Calculating the Cost of Borrowing Stock at Interactive Brokers

Two factors contribute to the daily cost/revenues related to short selling of stocks at IBSJ:

  • Borrow Fee
  • Borrow Fee Rebates for Short Sale Proceeds

Cost to Borrow JPY, USD Stock Example1,2

Symbol Name Short Position Value
7974.T
Nintendo Co Ltd
JPY
4894.T
Cuorips Inc
JPY
JPY
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)
7974.T
4894.T
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.


Borrow Fee Rebates for Short Sale Proceeds3

Accounts with NAV of JPY 15MM (or equivalent) or more will be issued a rebate on their stock borrow costs. Accounts with NAV of less than JPY 15MM (or equivalent) will be issued rebates at rates proportional to the size of the account. There will be no rebates issued on the first JPY 15MM.

Enter Balance
Currency

Enter your positive cash balance to calculate the approximate borrow fee rebate.

The borrow fee rebate calculator is based on information that we believe to be accurate and correct, but neither Interactive Brokers Securities Japan nor its affiliates warrant its accuracy or adequacy and it should not be relied upon as such. Neither IBSJ nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this calculator.

BM = Benchmark Rate
Currency Tier Rate Paid
USD 0 - 100,000 0%
100,000.01 - 1,000,000 2.380% (BM - 1.25%)
1,000,000.01 - 3,000,000 3.130% (BM - 0.5%)
3,000,000.01 + 3.380% (BM - 0.25%)
JPY All 0%

Disclosures

  1. Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations. Please note that the sample USD stock "BIRK" is not eligible for IBSJ Margin trading. 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 sale proceeds borrow fee rebate. Stock borrow fee rates may also vary by program or arrangement. 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. Cost to borrow calculations assume NAV is greater than or equal to JPY 15MM. Accounts with NAV below JPY 15MM may receive borrow fee rebates for short sale proceeds at rates which are proportionally less.
  3. For balances held in JPY, IBSJ 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 currencies in which the effective rate is less than zero, the borrow fee rebate is 0%.