Trading & Market Structure
Borrow Fee
Definition
What is Borrow Fee?
The fee paid to borrow a securityA tradable financial claim or ownership interest, such as a share, bond, or fund unit., often for short sellingSelling a borrowed security with the intention of buying it back later..
Example in practice
How This Looks in Practice
A scarce share carries a high annualised borrow fee.
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Related Terms
Trading & Market Structure
Bid
The highest price a buyer is currently willing to pay for a security.
Trading & Market StructureAsk
The lowest price a seller is currently willing to accept for a security.
Trading & Market StructureBid-Ask Spread
The difference between the best available buying and selling prices.
Order TypesMarket Order
An instruction to buy or sell immediately at the best available prices.