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Trading Mechanics
Borrowing Cost
Definition
The interest rate charged to borrow shares for short selling. Hard-to-borrow stocks have higher borrowing costs, which can exceed 50% annually for heavily shorted stocks.
Related Terms
Securities Lending
The process by which shares are borrowed from institutional holders (like superannuation funds) to facilitate short selling. Lenders receive a fee for making their shares available.
Short Selling
A trading strategy where an investor borrows shares and sells them, hoping to buy them back at a lower price. The investor profits if the stock price falls and loses money if it rises.
See short selling in action
Explore real-time ASIC short position data for ASX stocks.