short sale of investors

 What is an easy-to-borrow list?

The easy-to-borrow list is a list of highly liquid securities that is updated and made available by the brokerage house on a daily basis and is therefore provided to investors who wish to make a short sale.

Key Takeaways

The easy-to-borrow list is a list of highly liquid securities that is updated and made available by the brokerage house on a daily basis and is therefore provided to investors who wish to make a short sale.

The securities on the easy-to-borrow list usually have lower transaction fees, as well as easier short-term fees.

The easy-to-borrow list does not provide information about whether a security is overpriced or undervalued, but is rather a measure of expected liquidity or availability to potential short sellers.

Understand the list that is easy to borrow

Also known as Guarantees or Permanent Guarantees issued by members or affiliates, this list of easy loans is updated every 24 hours. This allows companies to make short sales easier because they don't have to look for stock availability every time they request a short sale transaction. On the other hand, they may think the promotion on the list is ready. Availability is usually due to its affordable features and/or large number of leading stocks, often referred to as stock market.

Unlike easy-to-borrow lists, many brokers maintain hard-to-borrow lists. These securities are by nature more difficult to borrow to motivate short sales. Often securities are difficult to borrow due to insufficient supply or fluctuating stock prices. Compared to listed securities, securities that are difficult to borrow almost always charge a higher fee for access to securities.

Unlike other reference lists maintained by brokers, easy-to-borrow lists do not offer information about overpriced or undervalued securities, but are rather a measure of possible liquidity or availability for potential short sellers. The securities on the easy-to-borrow list usually have lower transaction fees, as well as easier short-term fees.

Brokers with a more secure range or service menu usually have a more complete list of securities making them easier to borrow. Naturally, institutional investors, such as hedge funds, often seek instant access to short-selling opportunities, given that they are available to start trading.