Hard to borrow

A hard-to-borrow stock is one where lenders have few shares left, so the borrow fee jumps and shorts can be recalled. On such names a cash-settled claim is the only free door left to short, and its funding rate shows it.

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In the help centreSee the order types available on Mochatrade
  • Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…
  • Short sellingShort selling is selling a borrowed share to buy it back cheaper. The loss is open-ended if the price rises, the…
  • Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…
  • Short interestShort interest is the number of a stock's shares sold short and not yet bought back, published twice a month by FINRA.…
  • Long and short positionA long position profits when the price rises; a short position profits when it falls. On a contract on the price…
  • Inverse ETFAn inverse ETF aims for the opposite of an index's daily move, so it rises when the index falls, and it resets daily…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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