IB "Net Short Stock Interest"

Discussion in 'Retail Brokers' started by ET180, May 10, 2019.

  1. ET180

    ET180

    I looked at my YTD statement and under the "Interest" category, I noticed that every month I have an entry called "USD Net Short Stock Interest for <insert month here>". Sometimes it's a credit, but usually it's a debit. The amount is never really very much in either direction, but why would it ever be a credit? Isn't there always a borrowing cost associated with shorting stocks? I'm always short some stocks, often hedged with options.
     
  2. Overnight

    Overnight

    Does this help? *shrugs*

    https://www.investopedia.com/articles/01/082201.asp
     
  3. qwerty11

    qwerty11

    It is the sum of short stock cost and the income from SYEP. Probably you participate in the last (otherwise indeed the number will always be a "debit" (as you call it)).
     
  4. ET180

    ET180

    I expected the amount to be negative. I do participate in the SYEP so that must be where the credit is coming from. So thanks, that makes sense.
     
  5. qwerty11

    qwerty11