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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: eddieww who wrote (8433)	9/27/2002 11:07:10 AM
From: Killswitch	Respond to of 30712

It's true, the proceeds from the short sale earn a small amount of interest. I remember they even talked about it recently on the IB discussion board on their site. I'll look it up and see if I can find the details.

To: eddieww who wrote (8433)	9/27/2002 11:22:25 AM
From: Killswitch	Read Replies (1) \| Respond to of 30712

I got this off their discussion board in an answer to someone who asked if margin interest is charged for short sales: "Margin is never charged on short positions, only on a debit balance if you borrow cash. In addition, if you have a credit balance of over 100,000 from a short sale, we will pay interest. Please see Debit/Credit interest for details." If you look on their site in the Fees section you will find the rate: "Libor - 125 BPS", which is 100 BPS lower than you get on normal cash sitting in your account, but still it's better than nothing. I believe this is a fairly common practice, check with your brokerage to see.