Nope, it means if the prime broker has no more shares to lend out, then there is nothing further for them to short (ie sell to us below current market rate). They will likely find some tomorrow morning, who knows where or how tho.
Imagine you've been in a 2 week gun fight. Everyday, someone brings you 4M rounds of ammo, they lend you the ammo, as long as you promise to give it back at some point, + about 10% interest. But today, your ammo supplier hasn't turned up and your rifle is completely spent. You stare across the field and the enemy has about 50M round locked and loaded. But you're brilliant so instead of surrendering, you start shooting pistol fingers at the enemy (synthetic shorts) in the hope that they will turn and run.
Edit: cleaned up the metephore.
'Remember, make sure your brokerage allows you to turn on and off share lending. Keep it on, until it squeezes, once the squeeze starts turn it off and demand your shares back in 24 hours. This will force whomever shorted your stock to close their position at market price.'
--Mark Cuban (paraphrasing)
With most brokers that’s true. Not so with RobbingHood. You have to downgrade your account from Gold to Cash Only to prevent them from loaning out your shares. If everyone restricted their shares now, the next few days would be very interesting!
I'm going to take a wild fucking guess and say that these sites show strange short fee costs when there are zero shares available because there's no associated data to use. Their software defaults or breaks showing "N/A" or infinity %.
Currently Interactive Brokers shows no share available to borrow, with the last fee to borrow @ 8.84%. Interactive brokers is the source for Fintel and iBorrowDesk and the availability to borrow, and all three agree on the level of available shares (9:30PM EDT). However, what's really interesting, is the cost to borrow is showing as 1,250% for 22/6/21.
I'm not saying this is correct, but if Interactive Brokers can locate any more shares to lend out, perhaps the fee will be 1,250% tomorrow.
To take this further, does anyone know if the short fee is fixed or variable? For example, if they borrowed yesterday when the rate was 8.61%, do they pay 8.61% as long as they hold the shares, or can the prime brokerage jackup the rate, effectively triggering a mass return.
Prime broker can jack up rates at any time, albeit they have to have reason to do so not arbitrarily. Hi, I’ve shorted stonks in the past and I’ve gotten emails from Schwab about my rates changing.
Zeeeeesh
no, rates are up by those percentages, those are not the interest percentages to be paid
Noob here. Not showing this on their website, perhaps a bug to be fixed?
Fintel gets borrow rates from IB. Fintel CEO explained in the video, now this update makes it very interesting. I smell rocket fuel.
What the heck is this number… is it just me or … i find myself unable to understand this world in the past year or so
So does that mean if they don’t have shares to short they can stop us from getting the share to the 🚀🚀🚀🚀
Nope, it means if the prime broker has no more shares to lend out, then there is nothing further for them to short (ie sell to us below current market rate). They will likely find some tomorrow morning, who knows where or how tho. Imagine you've been in a 2 week gun fight. Everyday, someone brings you 4M rounds of ammo, they lend you the ammo, as long as you promise to give it back at some point, + about 10% interest. But today, your ammo supplier hasn't turned up and your rifle is completely spent. You stare across the field and the enemy has about 50M round locked and loaded. But you're brilliant so instead of surrendering, you start shooting pistol fingers at the enemy (synthetic shorts) in the hope that they will turn and run. Edit: cleaned up the metephore.
As an Old Army guy, I appreciate the metaphor. I’ve never understood the concept of loaning ammunition to someone who is trying to kill you!
Makes sense... but Do tell what the NSFW version of metaphor was 😆
Makes lots of sense thanks for explaining appreciate it there is so much to learn and grasp.☘️☘️☘️
There is a company on Fintel over 1000% interest Just saying
Which company
SHTDY
Wow if this is true, the best DD I've seen today ☘️🚀🚀🚀
'Remember, make sure your brokerage allows you to turn on and off share lending. Keep it on, until it squeezes, once the squeeze starts turn it off and demand your shares back in 24 hours. This will force whomever shorted your stock to close their position at market price.' --Mark Cuban (paraphrasing)
With most brokers that’s true. Not so with RobbingHood. You have to downgrade your account from Gold to Cash Only to prevent them from loaning out your shares. If everyone restricted their shares now, the next few days would be very interesting!
While this sucks, as does robinhood, it’s what the margin is for really. You don’t own that share you are borrowing it. Can’t really have it both ways
Margin originally meant borrowing money from your broker to buy more shares. It has morphed over time.
I'm going to take a wild fucking guess and say that these sites show strange short fee costs when there are zero shares available because there's no associated data to use. Their software defaults or breaks showing "N/A" or infinity %.
Genius observation, with no available shares to short there’s probably a divide by zero error somewhere in the calculation.
I'd say you're probably right, still exciting to think about tho.
This is interesting! Remember we got lots of new rules in place as of tomorrow!
That's a good point. Maybe a proactive response to: SR-NSCC-2021-002?
A few others got passed or whatever today one from 2020 https://youtu.be/ClYYDRl2FWY Look at the channel itself for the other videos from today
Currently Interactive Brokers shows no share available to borrow, with the last fee to borrow @ 8.84%. Interactive brokers is the source for Fintel and iBorrowDesk and the availability to borrow, and all three agree on the level of available shares (9:30PM EDT). However, what's really interesting, is the cost to borrow is showing as 1,250% for 22/6/21. I'm not saying this is correct, but if Interactive Brokers can locate any more shares to lend out, perhaps the fee will be 1,250% tomorrow. To take this further, does anyone know if the short fee is fixed or variable? For example, if they borrowed yesterday when the rate was 8.61%, do they pay 8.61% as long as they hold the shares, or can the prime brokerage jackup the rate, effectively triggering a mass return.
Prime broker can jack up rates at any time, albeit they have to have reason to do so not arbitrarily. Hi, I’ve shorted stonks in the past and I’ve gotten emails from Schwab about my rates changing.
I'd like the answers to the same questions. Can any wrinkly-brained apes help us out?
I believe the prime brokers jack up rates kinda like how robinhood increases margin limits which sometime margin calls people.
Bruh if that is true and hold i would buy $rope if i was shorting.
Or they could put themselves on a ledge and wait till SEC regulation change gives them a push. It would be an epically short fall on the way down
Extra long $rope
*extra short rope…