Deep short inventory for hard-to-borrow stocks

A locate is a requirement under Regulation SHO that brokers must confirm the availability of shares before a client can execute a short sale on a hard-to-borrow security. At TradeZero, the locate process is handled inside the platform — search a symbol, review the per-share fee, reserve the shares, and proceed to order entry without leaving your trading environment. Locate inventory is available from 4:00 AM to 8:00 PM ET on all platforms.

A hard-to-borrow stock is a security with limited share availability for short selling — typically low-float, high-demand names where locating shares requires aggregating inventory across multiple sources. TradeZero's proprietary locator pulls from over 14 inventory sources to maximise availability on HTB symbols. TradeZero supports short selling on stocks priced at $0.25 and above.

TradeZero offers three locate types. Standard Locates are for hard-to-borrow stocks not on the Regulation SHO threshold list — reusable and credit-back eligible when not linked to an open position. Single Use Locates are for Reg SHO threshold securities — single-use per day, typically cheaper than Pre-Borrows, and credit-back eligible if unused. Pre-Borrow Locates are for Reg SHO threshold securities — reusable for multiple shorts and covers, best for overnight holds. The system automatically serves Single Use Locates first for Reg SHO securities when available.

Regulation SHO is an SEC rule to prevent abusive short selling, including naked short selling. Regulation SHO threshold securities are stocks with significant fails to deliver over five consecutive business days — placed on the SEC threshold list and subject to stricter locate requirements. For these securities, TradeZero offers Single Use Locates and Pre-Borrows, with the system prioritising Single Use Locates when available as the more cost-effective option.

Yes you can. For Reg SHO threshold securities, TradeZero will provide both single use locates and pre-borrow shares whereby, when both are displayed, the user can choose which to buy based on pricing and intended use.

TradeZero locate inventory becomes available at 4:00 AM ET — during the pre-market session. This allows traders to secure hard-to-borrow shares before the regular session opens, when availability on high-demand names can tighten significantly. Locate access runs through to 8:00 PM ET on all platforms.

Yes. TradeZero offers a sell-back mechanism where you can mark unused locates for credit. The shares are reapplied to the next TradeZero customer on a first-in, first-out basis, and you may recoup a portion of the fee paid. In 2026, 16% of all short locate sales on TradeZero were reapplied through the sell-back network. Eligibility is subject to terms and conditions. The credit amount varies with availability at the time of sell-back.

TradeZero recorded a 92.1% average locate fill rate in 2025, measured across all TradeZero affiliated broker-dealers. Over 90 million shares were located monthly and more than 107,000 locate orders were filled monthly in 2026. Supporting documentation is available on request. The fill rate is an average and not a guarantee of availability on any specific symbol.

Short selling involves significant risks, including potentially unlimited losses, as share prices can rise indefinitely. Sudden price increases or short squeezes may lead to substantial losses, margin calls or forced position closures. Borrowed shares may also be recalled or become unavailable, requiring you to close your position. Locate fees, borrowing costs and other charges can further increase your losses. Short selling is generally suitable only for experienced investors who understand the risks involved.