Why Charles Schwab Broker show everything " Hard to Borrow" ?

Discussion in 'Retail Brokers' started by TradeTune, Aug 27, 2021.

  1. ph1l


    Maybe most of the assets are in cash accounts and not lendable?
    #11     Aug 27, 2021
  2. zdreg


    #12     Aug 27, 2021
  3. kmiklas


    I've wondered this myself.

    My theory is that since there's higher short interest fees for "Hard to Borrow" stocks... so they label pretty much everything that way.
    #13     Aug 27, 2021
  4. So far nobody could answer it ... Everyone knows meaning of "Hard to Borrow" , but why a stock becomes "Hard to Borrow" ? And how does it affect that stock ?
    #14     Aug 28, 2021
  5. Robert Morse

    Robert Morse Sponsor

    To those that use CS, I’m confused. Do they not allow shorting, or do they not provide locates on HTB or only do that for certain customers that qualify?
    #15     Aug 28, 2021
  6. AR15


    This guy doesn't know what hard to borrow means. he thinks that because he's holding onto some hard to borrow stocks all of them are going to squeeze just because shares ran out at Schwab, completely forgetting there are other brokers that cater to short sellers that have many times the locate availability of Schwab
    #16     Aug 28, 2021
  7. Robert Morse

    Robert Morse Sponsor

    Given that I have not worked in a stock loan department, so there is only so much I can understand about the inventory of locates, here is some information for those that know less than me. Each day, a clearing member needs to evaluate what symbols they have ample inventory either in house or through other clearing houses, to create a list of Easy To Borrow Stocks (ETB). They then look for symbols they can’t locate and recently have been failing to get borrows to meet current overnight shorts. Those symbols are Threshold symbols. Those are not available to short. The rest that are not ETB or Threshold, are symbols that require a Locate. A Locate is not a pre-borrow for overnight, it is permission to send an order to short that symbol. I’m not sure how each clearing firm determines how many shares they can provide Locates for, but they offer that inventory with some process to their clients. On Lightspeed Trader, on the Level 1 part of our Market Maker Window, we display E-ETB, L-Locate or T-Threshold. All Margin accounts can request a locate through either our service team or with a tool built into Lightspeed and Sterling Trader Pro. The Locates from the service team come from our inventory from Wedbush Securities and the Locate tool offers third party locates that have a cost per share.

    #17     Aug 28, 2021

  8. Hi Robert, I Just checked any stocks symbols that has HTB next to them , in the column "Short Sell Availability" it shows empty and stocks which show "available" , these stocks don't have HTB next to them.
    Now does it mean that those symbols which short aren't "Available" , i can't short them? I'm not sure because i never tried to short anything in last 3 months. I have to ask Chat support team on Monday and update here.

    Last edited: Aug 28, 2021
    #18     Aug 28, 2021
  9. Robert Morse

    Robert Morse Sponsor

    You will have to chat with them. It might be they are not offering shorting on some because they are too volatile vs HTB. At Lightspeed, we do not block shorting from volatility, but we do alter leverage based on risk.
    #19     Aug 28, 2021
  10. zdreg


    The same is true at Schwab. Day trading leverage is altered based on risk assessment for a very small list of securities.
    Last edited: Aug 28, 2021
    #20     Aug 28, 2021
    murray t turtle likes this.