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TheDane

05/23/14 12:53 PM

#6055 RE: sons4 #6053

They pay interest because they are margined. Even longs would pay interest on any margined stocks. It can be costly though. I've never done it.
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JamesK101

05/23/14 1:56 PM

#6061 RE: sons4 #6053

You pay the interest on the "hard to borrow" securities. Interest is set by the broker, highest I saw was 22%. Interest is based on the $ value you borrowed. Interest is calculated on the annual basis.

And you pay the margin interest too.