Short stock interest

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

  1. 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%?

  2. yes, that sounds right. but best to check with your broker.