Short stock interest

Discussion in 'Trading' started by ChrisMMM, Mar 20, 2009.

  1. ChrisMMM

    ChrisMMM

    if you brokerage says they pay you 1% for short stock interest, and you will pay 3% interest on borrowing money


    So if you hold short stock do you gain 1% or do you initally pay 3% and then get credited 1% for a net pay of 2%?

    Thanks
     
    #1     Mar 20, 2009
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  2. daves2074

    daves2074

    yes, that sounds right. but best to check with your broker.
     
    #2     Mar 20, 2009
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