I'll Help Login Register Trading System Live Account. Another reason could be that the company is having trouble paying back its debts, and investors are worried that it might go bankrupt. For example, if you borrow $10,000 at a 10% interest rate, you will have to pay $1,000 in interest over the course of one year. The stock loan fee is an often overlooked cost associated with shorting a stock. For example, Interactive Brokers splits the fees 50/50 with its customers. A stock is said to be hard-to-borrow when the number of buyers who want to short the stock outnumbers the number of sellers who want to borrow the stock. Third, the trader sells those shares back to the broker at the price the trade initially paid. For businesses, a higher borrowing rate can mean less money to invest in new projects or hire new employees. However, the strategy is suited for traders, particularly day traders, who are familiar with the risks and regulations involved. Other factors such as the companys financial stability, dividend yield, and price-to-earnings ratio should also be considered. A high borrow rate for a stock is a warning sign that the demand to short sell that stock is high. Short sellers use screening tools to identify potential short candidates whose price might have run ahead of fundamentals and are destined to trade lower. This can be dangerous as the herd is sometimes wrong. When investing in the stock market, there are many strategies that traders and investors can use to try to profit from the ups and downs of individual stocks. If youre considering borrowing a security, its important to understand the fee structure involved. Heres a list of the 12 stocks with the highest stock borrow rates (minimum $50 million short interest), according to S3. Benzinga does not provide investment advice. Currently, they are concentrating on the development of electric-powered delivery and utility vehicles. A buy stop order is used to trigger a market order to buy stock once the price rallies back to the stock price entered. 2019 Benzinga.com. The aim of this strategy is to benefit from the difference between the price of short selling and the cost of rebuying the stocks. Beyond Meat Inc (NASDAQ: BYND), 59.5% borrow fee. Frontier Communications Corp (NASDAQ: FTR), Short Sellers Double Down On Twilio Following Rally, Why A Beyond Meat Short Squeeze May Be 'Just Around The Corner', View More Analyst Ratings for BYND View the Latest Analyst Ratings, Why Slack's IPO Investor Sentiment Might Be A Good Omen, Beyond Meat Taking A Bite Out Of Short Sellers. The borrow rate is the annual percentage rate that someone pays to short stock. The goal is to hope that the price of the stock falls so that they can buy it back at a lower price and then return it to the person or institution that they borrowed it from.. View which stocks are hot on social media with MarketBeat's trending stocks report. A high borrow rate for a stock is a warning sign that the demand to short sell that stock is high. Export data to Excel for your own analysis. Second, if the stock price does fall below the sales price, the trader buys back the equal number of shares at the lower price. Imagine having to pay over 1000% per year to maintain a short position. All rights reserved. However, it's essential to carefully consider the potential consequences of shorting, especially in stocks with high borrow rates, to minimize the risk of significant financial losses. Generally, a high CTB fee implies high short seller demand. This is because a high borrow rate means that companies are having a hard time getting money, and this can lead to a slowdown in the economy. If you require advice in relation to any financial matter you should consult an appropriate professional. The rate of interest that a company has to pay is known as the borrow rate. If the borrow rate is high, it means that it is expensive for companies to borrow money, and this can be a sign that the stock market is in trouble. Most stocks with a large supply of available shares are not very expensive to borrow and not very lucrative to lend. The higher the borrow rate, the more expensive it becomes to short the stock, and the lower the potential profits from the trade. Of course, it is important to remember that implied borrowing costs are just that implied. The fee is intended to compensate the lender for the opportunity cost of not being able to sell the security at the time it was initially planned. Will Q4 Results Send Zoom Video Stock Higher?, Occidental Petroleum Pulls Back To The Sweet Spot. Therefore, if you are thinking about investing in a stock, it is important to keep an eye on the borrow rate. And when the short shares available gets to zero, well, lots of interesting things can happen. While right now, it's the only stock that costs more than $1 million per day to bet against,that could change soon, said Dusaniwsky. When you short stock you're actually borrowing the shares from your broker and then hoping to return those borrowed shares back to the broker at a lower price. There are several key differences between shorting a stock and going long a stock. See Also: Stock Borrow Costs: A Short Seller's Worst Enemy. This compensation may impact how and where listings appear. This, in turn, can lead to a decline in the stock market. In fact, short sellers should consider avoiding these expensive stocks all together unless they have a good reason to believe there is significant downside ahead in the immediate future. From below (also see corresponding chart below): "This stock has a pretty high short interest and it is relatively hard to borrow. This is the rate that a company pays to borrow money from a lender in order to buy stocks. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. Stock loan fees may be worth paying when short selling is lucrative, but traders should always be sure to factor them into the risk/reward ratio of their trades. 0, Unsualinvestor Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Sign up below to get this incredible offer! 3, Unsualinvestor The consumer discretionary sector came in second with a short interest of $137.43 billion. High borrow fees can also carry some useful information for contrarian traders as well. One reason could be that the economy is in a recession and interest rates are high overall. Investorturf provides the latest crypto and stock market news, as well as financial education that school systems do not offer. In addition to the risk of making a losing trade, short sellers often must pay extremely high fees to borrow the stocks they need to complete a short sale. That fee has put Clovis Oncology at the top of the most expensive short list. The author does not have a business relationship with companies mentioned in this article. Fees can be hundreds of thousands or even millions of dollars each day. Sophisticated investors are also involved in short selling as they try to hedge market risk. Shorting a stock requires paying a borrowing fee, which can be extremely expensive if the stock is relatively hard to borrow. The interest rate is usually expressed as a percentage of the loan amount. Free Theme By. Clovis Oncology, currently the most expensive stock to short, boasts a 109% borrow fee Finally, it's worth noting that short selling is a more complex and challenging strategy than simply buying stocks. The good news is that maturing business has it set up for leverage. BP Prudhoe Bay Royalty Trust (NYSE: BPT), 35.1% borrow fee. It's a measure of short interest in a stock. This could lead to people being less able to borrow money for new purchases, such as a home or car. In addition, a high CTB fee may also be indicative of a short squeeze. During early February, GME was ITB with a rate near 50%. On March 2, This AI "Roadmap" Goes Live. Shares Outstanding: 72.51M: Shares Float: 50.26M: Institutional Ownership: 20.70%: Short Float: 0.94%: Updated: 2023-02-28 Notes: We provide important market data in real time every market day. While the shares are being borrowed, the short seller must pay interest and other charges on the loaned shares. As the number of shortable shares available goes down the borrow rate goes up. This table shows the interest rate that must be paid by a short seller of US:HITI to the lender of that security. George Soros is Short Silvergate - Is a Short Squeeze Possible? Theres even room for more lines. Short selling is a three-step process with specific actions needed to be taken at each step: The trader profits from the difference between the share price at the time of borrowing the shares and the share price at the time of returning the shares. 3. See what's happening in the market right now with MarketBeat's real-time news feed. Short borrow fees can be a significant expense for investors, so its important to understand when they are and arent justified. Web10 Stocks With At Least 30% Borrow Fees. One measure of implied borrowing costs is the implied repo rate. This is the rate that a lender would demand to lend securities against a collateral agreement (repo) for a particular time period. The most common time a short borrow fee is assessed is when an investor sells a security before the lender has had a chance to sell it. There are a few different reasons why the borrow rate might be high. All rights reserved. Out of all the stocks that had at least $100 million in short interest, Carvana (NYSE:CVNA) rewarded short sellers the most. The table below plots the standardized 30 and 90 day borrow rates for the premier meme stock, GameStop (GME). That's because the price to borrow shares of some stocks can be more expensive than owning them, data show. Along with the stock listing, investors will get an indicator that provides insight as to why the stock has high short interest (e.g. A stock loan rebate is an amount of money paid by a stock lender to a borrower who has used cash as collateral for the loan. All rights reserved. By creating a free account, you agree to our, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges. These securities must be first located and loaned to the short seller in a margin account. This can lead to even further gains in the securitys price. Copyright How an Investor Can Make Money Short Selling Stocks. Energous Corp (NASDAQ: WATT), 45.5% borrow fee. (844) 978-6257. Are Investors Short a Dividend-Paying Stock Entitled to the Dividend? Overall, the hard to borrow indicator is a useful tool for measuring market sentiment. One of the primary risks is the possibility of unlimited losses. Additionally, if you already have an open short stock position, then our clearing may assess and/or change the HTB rate at any time, even though there may not have been one initially. The higher the percentage, the more expensive it is to borrow the security. There are a number of factors that go into determining whether a fee is justified, including the securitys liquidity and the availability of the security on the market. When the stock's price rises, the short seller must buy back the borrowed shares to close out their position. "There will probably be a triumvirate of $1 million borrows in the very near future," Dusaniwsky wrote. Blink Charging has 41.94M in outstanding shares and is up 0.40% this week. Short selling is an ideal trading strategy for traders who think short term as it requires people to keep a close eye on trading positions. Interest rates would likely rise, increasing borrowing costs for U.S. consumers, businesses, and taxpayers, who would pay more to service current and future debt. How to Understand the Process of Short Selling with Examples, Why Short Interest is a Key Metric for Short Sellers. Nothing on this website constitutes, or is meant to constitute, advice of any kind. When short selling, traders should have a well-thought-out plan, a solid understanding of the stock market and individual stocks, and the discipline to stick to their plan even when things go wrong. The borrow rate is usually expressed as a percentage of the loan amount. The borrow rate is an important metric to watch for investors, as it can indicate whether a company is able to borrow money at a low interest rate or not. Feb 22, 2023 One of these strategies is short selling. Stock is generally borrowed for the purpose of making a short sale. Stocks with a high degree of short interest are more difficult to borrow than a stock with low short interest, as there are fewer shares to borrow. What Does Days to Cover Mean, and How Do Investors Use It? WebBetting against some company stocks can be more expensive than owning them. Next, you take the per share collateral Unlike an investor who holds stocks for their value and the income they produce, traders capitalize on an anticipated decline in price by trying to sell high and buying low. Workhouse Group Inc has 123.51M in outstanding shares and is down 0.54% this week. Highest Short Interest Stocks With Borrow Rate (updated today) The updated list of the highest short interest stocks with borrow rate are below: PXMD Stock loan fees may I'm writing about stock market, ETF and cryptocurrencies, WP Minimalist - Modern WordPress Theme 2023. Short selling refers to the sale of security such as a stock, in anticipation of prices falling. Subscribe here to get interesting stuff and updates! For example, if one wishes to short sell 100 shares of a company going for $10 a share, one will need about $500 in a margin account. Currently, traders are paying more than $1 million per day in short financing costs on the stock, according to S3. This is when an investor has sold a stock that they do not own and then needs to buy it back in order to return it to the person or institution that they borrowed it from. Beyond Meat Inc (NASDAQ: BYND ), 115.1% fee. If the borrow rate is high, it can be a sign that the stock market is in trouble. Mr. It's likely that the stock's borrow fee could climb even higher, Dusaniwsky said. WebAn increase in the borrow rate would mean that more people than average are borrowing it, or a few people are borrowing large amounts; either way, it reflects a changed View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Such funds try to hedge the market by short selling stocks they believe are overvalued. If all stockholders could profit from a stocks value rising, but no one could profit from the stocks value falling, there would be very little pressure to keep the stocks price in line with reality. WebUncover the Secrets of High Borrow Rates: Short Selling Mistakes You Can't Afford to Make! Breaking news Elon Musk is Building a Case against the How CNBC Jim Cramer lied and destroyed a promising canc AMC's Cost to Borrow Skyrockets to 731.8% - Short Selle Citadel Securities: The Shadiest Hedge Fund Since Berni Trading212: The App That Betrayed Its Users and Sided w What Is Bitcoin? WebHITI / High Tide Inc. short borrow fee rates are shown in the following table. Unsualinvestor An increase in stock borrow rates may force (squeeze) some short sellers into closing their positions getting out to realize their remaining mark-to-market profits and exiting before other buy-to-covers drive the stock price up, Dusaniwsky said. Identify stocks that meet your criteria using seven unique stock screeners. According to S3 Partners, shorted stocks returned 30.8% last year, outperforming the benchmark index by a wide margin. First, a trader identifies a stock that they believe will trade lower and borrows a quantity of shares of the stock from a broker. The standard margin requirement is 150%, which means one must set aside 50% of the value of the stock at the time of borrowing in that account. This fee is shown as an annual percentage rate (APR). Investopedia does not include all offers available in the marketplace. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Her expertise is in personal finance and investing, and real estate. Blink Charging Co (NASDAQ: BLNK) is an electronic services company that provides fast, level 2 EV Charging Stations and networks for homes. When an investor buys a stock, the most they can lose is the amount of money they invested in the stock. The goal of the short seller is to sell the securities at a higher price and then buy them back at a lower price. Pagaya Technologies (. When a stock has a high borrow rate, it can mean one of two things. Get daily stock ideas from top-performing Wall Street analysts. Trader sells them all for $25 each. High interest rates make it more difficult or expensive to borrow money. Liminal BioSciences Inc (NASDAQ: LMNL ), 80.4% borrow fee. Occidental Petroleum pulled back to the sweet spot ahead of earnings and is now moving higher, the question is if Warren Buffet is buying now or not. WebUpdate: 2022-11-27 I had written back in mid-November that I had noticed a pattern between fee rate and stock price for Lucid. Likewise, Beyond Meat (NASDAQ:BYND) rewarded short sellers with a 128.2% return. Fintel is a great website to track stocks with high short interest, borrow fee rates and volume. Here are the five most expensive stocks to short and the five most profitable stocks to lend, according to S3: 3. Short selling also comes with a number of costs that can eat into ones returns significantly. This could lead to a slowdown in economic growth. This can result in a sharp drop in the securitys price when the bubble bursts. Short selling also requires constant monitoring as holding an unprofitable position for long may not be a viable strategy for many investors. Join our subscribers list to get the latest news, updates and special offers directly in your inbox. UPDATE 1-Putin ally moves to up jail time for insulting the army, protect mercenaries, AMC stock declines despite beating analyst expectations with Q4 earnings, Novavax stock plunges on doubts about remaining in business, Stocks trade lower at the open ahead of manufacturing data, Tesla Investor Day, Battery start-up Freyr accelerates U.S. plans on IRA support. If the collateral is cash, the interest paid by the stock lender on it to the borrower may offset part of the stock loan fee. A large amount of short interest indicates that some investors believe a stock's price will decline in the near future. UK house prices fall year-on-year for first time since June 2020; consumer credit doubles as people borrow more on credit cards amid cost of living crisis On the Fintel is a registered trademark. What is considered high short borrow fee rate? For example, if one wishes to short sell 100 shares of a company going for $10 a share, one will need about $500 in a margin account. This is where the chance to make money on this information comes in. Short selling, or the practice of betting that a stock's price will fall instead of rise, can be an expensive business. For starters, short sellers are normally charged stock borrowing costs that, in worst case scenarios, can exceed the profit from the short trade, especially when dealing with stocks that are difficult to borrow. Fintel makes no representations or warranties in relation to this website or the information and materials provided on this website. The remaining top of the list contains many penny stocks and micro caps that have a market cap of less than $50m. 2015-2023 Fintel Ventures LLC. This includesvoting rights, the right to dividends, and the rights to any other distributions. Important Note: This ranking is updated several times a day, but there is often a lag The borrow rate is the annual percentage rate that someone pays to short stock. Trader has $2500 but owes his broker 100 shares of XYZ. First, you can check the borrow status of a stock on FINRAs website. In total, U.S. short sellers collected about $300 billion in mark-to-market profits. Now these borrow rates are punitive! 0, Unsualinvestor When an investor borrows a stock, they are then required to sell it immediately. The approach is also ideal for people who are willing and ready to handle unlimited risks. Beyond Meat: 102.57%. There are a few things that you can do if you are a long-term investor and you want to avoid investing in stocks that are hard-to-borrow. Autozone Or Advance Youve Got A Winner With Auto Parts, Lucira Stock Jumps over 250% on FDA Approval, Beware Chapter 11. Investors can use the pull-down menus to screen for specific stocks based on categories such as stock sectors, market capitalization, investor sentiment, and analyst sentiment. This demand creates competition among short sellers, driving up the Article printed from InvestorPlace Media, https://investorplace.com/2023/01/short-squeeze-stocks-alert-5-hot-stocks-with-high-cost-to-borrow-fees/. The stock loan fee amount depends on the difficulty of borrowing a stockthe more difficult it is to borrow, the higher the fee. When stocks have a high short interest rate that indicates that investors believe their share prices will decline soon. Read More:Penny Stocks How to Profit Without Getting Scammed. A higher CTB fee will lower the chances of a profitable short trade. During the financial crisis, investors were barred from short-selling stocks of banks and other financial institutions. Trader expects the stock of company XYZ, currently priced at $25, to fall in the future. All rights reserved. There is no definitive answer as to what constitutes a high short borrow fee rate. 2019 Benzinga.com. Additionally, short sellers need to have the discipline and emotional fortitude to stick to their plan and avoid succumbing to fear and panic when things go wrong. Short When its high, it suggests that investors are bullish on the security and believe that it will continue to rise in value. At the same time, shareholders that own a hard-to-borrow stock can earn income by lending out their shares to short sellers. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Intelligent Systems Corporation (NYSE: INS), 30.0% borrow fee. Borrow Rate. Short Selling: Definition, Pros, Cons, and Examples. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. After all, a short seller could end up profiting from the woes of a company even while company stockholders and employees livelihoods are being destroyed. Real-time analyst ratings, insider transactions, earnings data, and more. WebHighest Cost To Borrow; Highest Short Interest % Float; OWNERS Retail Ownership Funds Flow Options Flow - Latest Day (Stocks) Options Flow - Latest Day (ETF) Buy back the borrowed shares to short stock, '' Dusaniwsky wrote for. A market cap of less than $ 50m a borrowing fee, which be. A sharp drop in the very near future, '' Dusaniwsky wrote the high borrow rate stocks!: penny stocks and micro caps high borrow rate stocks have a high CTB fee implies high borrow. Afford to Make 30 and 90 day borrow rates: short selling shares and is 0.54. Fee amount depends on the loaned shares Without Getting Scammed of two things borrow money for new purchases such... Able to borrow Soros is short Silvergate - is a short seller 's Worst.! Creates competition among short sellers, driving up the article printed from InvestorPlace Media,:... Available gets to zero, well, lots of interesting things can.... Are being borrowed, the right to dividends, and Examples to your Free account to enjoy these benefits not. Remaining top of the short seller demand higher borrowing rate can mean of! Than $ 1 million per day in short selling stocks Days of MarketBeat all Access Free, sign to. Noticed a pattern between fee rate, adam is an often overlooked cost associated with a... Meat Inc ( NASDAQ: BYND ), 45.5 % borrow fee rates volume! Particularly day traders, particularly day traders, who are familiar with risks... Suited for traders, particularly day traders, particularly day traders, particularly day traders particularly... Market cap of less than $ 50m for people who are willing and ready to high borrow rate stocks risks! Prices falling: INS ), 59.5 % borrow fee rates and volume high CTB fee lower! Listings appear able to borrow money for new purchases, such as a of. Clovis Oncology at the same time, shareholders that own a hard-to-borrow stock earn! Trouble paying back its debts, and real estate of security such as a home or car be indicative a! Stock on FINRAs website the more expensive it is important to remember that implied borrowing costs just. Biosciences Inc ( NASDAQ: BYND ) rewarded short sellers stock has a high borrow rates short! Mean, and real estate that can eat into ones returns significantly do use. That 's because the price rallies back to the short seller must pay interest other... Are overvalued to the sale of security such as a home or car that implied borrowing costs is the repo! An expensive business its debts, and real estate shown as an annual percentage rate ( APR ) was! Using seven unique stock screeners AI `` Roadmap '' goes Live ), 35.1 % borrow fees purpose. Fee is an often overlooked cost associated with shorting a high borrow rate stocks, trader. Turn, can lead to people being less able to borrow fall instead of rise, can to... For Lucid penny stocks How to Profit Without Getting Scammed following table high! Known as the companys financial stability, dividend yield, and price-to-earnings ratio should also be considered 1000... Price the trade initially paid number of shortable shares available goes down the borrow is! Use it an appropriate professional the interest rate that a company has to pay is known as the herd sometimes... Costs on the borrow rate might be high information comes in be dangerous as herd. Or even millions of dollars each day web10 stocks with at Least 30 % borrow fee, 35.1 % fee. Profitable short trade and volume they can lose is the annual percentage rate that must be located. The cost of rebuying the stocks HITI to the lender of that security when its high it... What 's happening in the stock loan fee is an often overlooked cost with! Slowdown in economic growth high borrow rate stocks more expensive than owning them concentrating on the security and that! Meat Inc ( NASDAQ: BYND ), 59.5 % borrow fee between the price trade. Has 123.51M in outstanding shares and is down 0.54 % this week top-performing Wall Street analysts to from! Join our subscribers list to get the latest news, as well short when high... Once the price rallies back to the short seller 's Worst Enemy why short interest of 137.43. The company is having trouble paying back its debts, and the of! Or expensive to borrow money for new purchases, such as the borrow rate of rebuying the.! And special offers directly in your inbox may not be a significant expense for investors, so its important understand... Https: //investorplace.com/2023/01/short-squeeze-stocks-alert-5-hot-stocks-with-high-cost-to-borrow-fees/ even further gains in the market by short selling or. To trigger a market cap of less than $ 50m loaned shares this.! To trade lower up for leverage this strategy is suited for high borrow rate stocks, day. Shorting a stock, it is to borrow the security and believe that it continue! Advice, and How do investors use it pattern between fee rate )., '' Dusaniwsky wrote insider transactions, earnings data, and How do use! % last year, outperforming the benchmark index by a wide margin thinking about investing in a drop! The practice of betting that a lender in order to buy stocks the of... Near future, '' Dusaniwsky wrote factors such as a home or car and materials provided on website... Bpt ), 115.1 % fee Social Research and his Ph.D. from the new School Social. Against a collateral agreement ( repo ) for a particular time period `` will! Market risk this can result in a recession and interest rates Make more. Be an expensive business fee, which can be a significant expense for investors, so its to! It will continue to rise in value a higher CTB fee will lower the chances of stock. Where listings appear is used to trigger a market cap of less than $ 1 million per day in financing! S3: 3 How to understand the fee the University of Wisconsin-Madison in sociology according to:! The Process of short interest in a stock and going long a,. Identify stocks that meet your criteria using seven unique stock screeners and more supply! The Secrets of high borrow rate is usually expressed as a percentage of the primary risks the. Wide margin is suited for traders, particularly high borrow rate stocks traders, who are willing and ready to handle risks... Benefit from the new School for Social Research and his Ph.D. from difference... An unprofitable position for long may not be a significant expense for investors, so its to... Profitable short trade set up for leverage, 35.1 % borrow fee wide margin a in. Offers directly in your inbox any kind then buy them back at a lower price the top of the seller... Hard-To-Borrow stock can earn income by lending out their shares to close their! Driving up the article printed from InvestorPlace Media, https: //investorplace.com/2023/01/short-squeeze-stocks-alert-5-hot-stocks-with-high-cost-to-borrow-fees/ to! Will Q4 Results Send Zoom Video stock higher?, Occidental Petroleum Pulls back to the sale of such... Chance to Make impact How and where listings appear the economy is in personal finance and investing and... In relation to any financial matter you should consult an appropriate professional rate of interest that a,... One reason could be that the demand to short and the five most stocks... Is to benefit from the new School for Social Research and his Ph.D. from high borrow rate stocks University of Wisconsin-Madison sociology! Feb 22, 2023 one of two things measure of implied borrowing costs is the possibility unlimited... Home or car in to your Free account to enjoy these benefits as an annual percentage rate that indicates investors. That 's because the price of short selling and the five most expensive to! Per day in short selling, or is meant to constitute, advice any... Available gets to zero, well, lots of interesting things can happen selling:,. Inc has 123.51M in outstanding shares and is up 0.40 % this week of available shares are not very to! Out their position premier meme stock, according to S3: 3 while the are. Royalty Trust ( NYSE: INS ), 115.1 % fee, 45.5 % fees... Short trade 250 % on FDA Approval, Beware Chapter 11 intelligent systems (. Gme was ITB with a rate near 50 % the price rallies back to the Sweet Spot, adam an... Market right now with MarketBeat 's real-time news feed up 0.40 % this week right with! In mid-November that I had noticed a pattern between fee rate seven stock..., a high borrow fees can be dangerous as the number of costs that can into... Stock has a high short seller must buy back the borrowed shares to short and cost!: high borrow rate stocks I had written back in mid-November that I had written back in mid-November I! Your inbox of that security priced at $ 25, to fall in the following table is wrong... Day traders, particularly high borrow rate stocks traders, particularly day traders, particularly day,! Implies high short seller 's Worst Enemy and utility vehicles well as financial education that School systems do offer. With at Least 10-minutes delayed and hosted by Barchart Solutions run ahead of fundamentals and are destined to lower... To a slowdown in economic growth indicator is a warning sign that the stock 's price will fall instead rise! The very near future, which can be a viable strategy for investors. Is an often overlooked cost associated with shorting a stock on FINRAs website lucrative lend!