Compare Borrow Rates

The Yield Optimizer opens and displays all tickers in which you currently hold a short position. If you are considering putting on a short position and want to compare rates for the borrow transaction, use the Borrow Shares section of the Yield Optimizer.

Borrow Shares - Fields

Field

Description

Net Position

This is your aggregate net stock and SSF short position.

First EFP

Shows the rate you would pay to borrow shares by selling the EFP with the nearest SSF expiration. When you sell the EFP, you buy the stock and sell the SSF - this temporary purchase is in essence a borrow.

Next EFP

Shows the rate you would pay to borrow shares by selling the EFP with the next closest SSF expiration. When you sell the EFP, you buy the stock and sell the SSF - this temporary purchase is in essence a borrow.

IB Rate

Shows the rate you would pay to borrow the shares from IB. If you hold a short position and have not borrowed shares using any other method, this is the rate you are currently paying.

To compare borrow rates

  1. Enter the underlying for the stock you want to short.
  2. Compare borrow rates between First EFP, Next EFP, and IB Borrow Rate.
  3. Select a row to view the details in a sub-panel.

Note that the contract details panel displays all available EFPs.

To borrow shares using one of the Yield Optimizer methods, click the desired Borrow Rate from the contract panel.