TD Stock Loan Fee

Discussion in 'Retail Brokers' started by kv1289, Jan 4, 2021.

  1. kv1289


    TD rep told me there is no stock loan fee on short stock. Is this true?
    If I short sell 100k of stock XYZ and post the required margin, my daily cost of carry is $0?
  2. zdreg


    No fee if the stock is easy to borrow, I suggest you learn about short selling before taking action. Use internet search to learn the basics, particularly how a short sale is created.
  3. kv1289


    I've done a decent amount of research about the mechanics of short selling but I still have a few unanswered questions.

    In an account with 30% margin requirement and 60k in cash.
    Purchase 100k notional of stock ABC and post 30k for margin.
    Short 100k notional of XYZ and post 30k of margin.

    It's my understanding the purchase of ABC will require a 70k margin loan from the broker to finance the position. (100k less 30k cash collateral)

    Will the 100k in cash proceeds from the short sale of XYZ offset the 70k margin loan?
    In other words, by putting on this position, will there be any funds borrowed from the broker?
    Last edited: Jan 4, 2021