HELP
How hard to borrow fees are calculated?
• Promotion
• Account Opening
• Deposit & Withdrawal
• Stock Transfer
• Fees
• IRA
• Platforms
• Webull Desktop
• Glossary
• Markets
How hard to borrow fees are calculated?

Hard to borrow stocks that are sold short are charged a hard to borrow fee which accrues daily.  The calculation for the hard to borrow fee is shown below.

Hard-to-Borrow Fee Calculation:

Current price of stock = \$13.00

Number of shares sold short = 1,000

Hard-to-borrow rate = 6%

Current industry convention = 1.02

* The current industry convention percentage set by the securities lending market participants is subject to change.

(Market Price of Stock) x (1.02) = Per Share Collateral Amount (rounded up to the nearest dollar)\$13.00 x 1.02 = \$13.26 = \$14.00

(Per Share Collateral Amount) x (Share Quantity) = Trade Value\$14.00 x 1,000 = \$14,000

(Trade Value) x (Annual Hard-to-Borrow Rate) = Annual Hard-to-Borrow Fee \$14,000 x 0.06 = \$840

(Annual Hard-to-Borrow Fee) / (360 days) = Daily Hard-to-Borrow Fee \$840 / 360 = \$2.33 Daily Hard-to-Borrow Fee

Please note that the hard to borrow rate changes daily so the fee will vary each day.

Problem Solved?
Solved
Unsolved