Short Stocks

Discussion in 'Stocks' started by mydann, May 4, 2008.

  1. mydann

    mydann

    Just checked some shortable stocks at our brokage website, the borrow cost is more than 25% rate.

    So, what's the edge to short these stocks while paying too much for borrowing?
     
  2. zdreg

    zdreg

    25%interest rate is irrelevant for a trade with a duration ofa couple of days
    why do you use the phrase too much. obviously pros disagree with you.
     
  3. you think 25% annually is a lot huh?

    Well look at the repo rate implied by the options on TMA! (Btw, I'm short those options, since I think the cost to borrow is unjustified).