What are hard to borrow (HTB) fees and share availability?
A lot happens in a split second when you line up a short stock order. Our clearing firm has to locate the stock position before you're able to short it. When there is a lot of demand to short a stock, then locating shares can be challenging. As a result, our clearing firm may assess a hard-to-borrow (HTB) fee. Hard-to-Borrow Fees also apply to assigned short calls, resulting in short stock. That said, it is not uncommon for short calls to be assigned early due to high short interest.
How do I know if a stock is hard-to-borrow?
If an underlying is hard-to-borrow and potentially subject to an HTB fee, this will be indicated as a preflight message on the order confirmation ticket as illustrated below.
