A lot happens in a split second when you short a stock. When you short a stock, our clearing firm has to locate the stock position before you're able to short it. At times when there is a lot of demand to short a stock then locating shares can be challenging, and this is when hard-to-borrow (HTB) fees can be assessed. 

If you want to short a stock and want to see if there is an HTB rate or availability, then it will be displayed during order entry after clicking Review and Send. The rate shown is an annualized rate and can be assessed and changed at any time at the discretion of our clearing firm. HTB fees are charged daily and are passthrough. Also, if shares are not available to short, then the notification will be displayed instead of the HTB rate.