How are overnight borrow rates calculated?

TradeZero provides you with an estimated overnight borrow calculator to help you understand and manage the costs of holding a short position overnight. Any displayed intraday overnight borrow rates are estimated and are subject to change throughout the trading day.

TradeZero's actual overnight borrow rates are established after the close of regular trading hours (4:00 pm Eastern Time) every trading day and may vary substantially from any estimated rate received prior to the 4:00 pm ET close.

Furthermore, actual overnight borrow rates may also vary substantially from day to day. By holding a short position overnight for one or more nights, you understand and agree that TradeZero will charge you the actual overnight borrow rate applicable for each night you hold a short position until you cover that short position. As a result, it is important to check the estimated cost daily if you plan on holding a short position for more than one day. You are ultimately responsible for all risks and costs associated with your trading.