Shorting Stocks Fee Rate and Rebate Rate

Discussion in 'Interactive Brokers' started by debux, Jun 21, 2020.

  1. debux


    Hi there,

    I checked the SLB for some EU stocks and saw this:

    Fee Rate: 3,24%
    Rebate Rate: -5,95%

    How can it be that the Fee Rate is lower then the Rebate Rate?

    Last edited: Jun 21, 2020
  2. debux


    I can answer it by myself:

    It is because of the negativ interests in EUR. The rebate rate is always shown for top Tiers level, which is -2,8% for EUR.

    So the rebate rate is what you have to pay in total for shorting the stock if you are at top tier level.
    murray t turtle likes this.
  3. MarkDawn


    Rebate is what a trader has to pay at the time of selling.
  4. debux


    ...but only if you are at Top Tier level, otherwise you have to pay less. For example EUR Stocks you have to pay 2% less for shorting under 100k.
  5. mikehussy


    It is important for you to understand what the rebate rate actually is, any amount paid by a stock lender to a borrower who has put cash collateral to borrow a stock is termed as a rebate rate. But the main question arises that can a rebate be negative? It can be but only in situations where the interest rate in a respective dealing currency goes negative.
  6. debux


    Rebate Rate = Fee Rate - interest you get

    This is what you have to pay for shorting Stocks.

    In case of negativ interests the rebate rate is: Fee Rate + interest you have to pay

    SLB in TWS always shows the Rebate Rate for Top Tier, so properly you have to adjust the interesr.