Stock borrowing rebate rate in IB

Discussion in 'Stocks' started by abrakadabr17, Jan 20, 2015.

  1. I see two different rates in SLB tool of IB: the borrowing rate and the rebate rate. E.g., 10 for the borrowing rate and the negative -9.87 for the rebate.

    Do I understand it correctly that whenever I short a stock I am paying the annual rebate rate (9.87 in the above example ) and it adds up to the interest accruals?

    Thank you.
     
  2. rmorse

    rmorse Sponsor

    Where are you seeing this, on TWS, the web portal or on your daily sheets? It would be easier if I could see a screen shot so I can confirm if you are looking at a dollar amount or a percentage. Victor Securities also is an introducing broker to IB. I don't do a lot of business there but if you email me a screen shot I'll see if I can help you.
     
  3. def

    def Sponsor

    it adds up to the fed funds rate
    https://www.interactivebrokers.com/en/?f=shortableStocks

    and
    https://www.interactivebrokers.com/en/index.php?f=shortableStocks&p=tools

    Transparent Pricing
    Borrow fees and interest rates are broken out into two separate values, instead of opaque over-the-counter "bundled" costs. The borrow fee2 is directly quoted in the TWS market data line for the product, and the interest rate3 (Effective Federal Funds Rate) is displayed when you hold your mouse over any borrow fee.