earning interests on shorts -> Don

Discussion in 'Prop Firms' started by OHLC, Aug 22, 2002.

  1. OHLC

    OHLC

    Question for Don : what is the interest rate collected on overnight shorts @BT ?

    OHLC
     
  2. It varies of course, almost daily...I'll have to check my sheets....I'll try to edit this in a minute...

    OK, don't hold me to this, because it depends on the stock in question. Right now it is about 1.50% -3.00% (sorry for the wide range, there are a few variables involved).

    Don
     
  3. I would be curious to know that info as well. Furthermore, what are your debit rates?
     
  4. I read somewhere on your web site that you only get short interest on short balances over $100,000.

    Is this true? If so why?
     
  5. I believe the rate differential at Bright has always been 1.5% between the long rate paid and that earned. I also think you had to be short at least $100k to receive the short stock rebate.

    Don, has this changed?

    Then, of course, depending on your "leverage" you MIGHT owe a firm haircut % on your total position. I think the first 6-1 or 8-1 didn't involve a firm haircut. The rate was lowered substantially this year.

    Don?
     
  6. That is one hell of a range ...
     
  7. Two guesses ...
     
  8. Things change all the time....the $100K is where traders start receiving short stock interest (has been going back to trading floor days, better than most firms...but we have nothing to do with that.....it's an SLK thing).

    And, yes, you're right about the haircut reductions....anyone can check our website.....

    Don
     
  9. Hmmmmmmmm? That's odd. ETG clears thru SLK and they do not have $100k minimum before short interest is received.

    Sounds fishy to me.
     
  10. Don,at Bright,is interest paid on long stock held overnight,without regard to how much you are holding?
     
    #10     Aug 24, 2002