Skip to content

Stock Locate

OVERVIEW

A stock locate is a formal arrangement where a broker-dealer confirms it has borrowed or can borrow shares of a specific stock to facilitate a short sale. Tapeboard surfaces locate data, borrow rates, and HTB flags directly in the market terminal so traders can assess short-side costs before entering a position.

Note

Regulation SHO requires brokers to have reasonable grounds to believe a security can be borrowed and delivered before a short sale is executed. A locate confirms availability at execution but does not guarantee the position will not be bought in later.

FEATURES

Feature Description
ETB / HTB Flag Automatically classifies each security as Easy-to-Borrow or Hard-to-Borrow based on real-time inventory feeds
Borrow Rate Display Shows the current annualized borrow fee as a percentage of trade value
Daily Fee Estimator Calculates the estimated daily borrow cost for a given share count and entry price
Locate Ticket Status Indicates whether a locate has been issued, is pending, or has expired for the current session
Borrow Rate Alerts Notifies the trader when the borrow rate on a watched symbol spikes above a defined threshold
Short Squeeze Signal Flags sudden borrow rate increases as an elevated short squeeze risk indicator

HOW TO USE

Viewing Locate Status

  1. Open any equity in the Tapeboard terminal.
  2. Navigate to the Short Data panel on the right sidebar.
  3. The ETB / HTB badge appears next to the symbol header.
  4. For HTB securities, the current annualized borrow rate is displayed below the badge.

Estimating Borrow Costs

Use the built-in fee estimator to calculate your daily and total holding cost before entering a short position.

Formula used by the estimator:

Daily Fee = (Position Value × Annualized Borrow Rate) / 365

Example — Shorting a Hard-to-Borrow Stock:

Input Value
Share price $20.00
Shares shorted 500
Position value $10,000
Annualized borrow rate 80%
Daily borrow fee $21.91
10-day total cost $219.10

Tip

Enter your intended share count in the Fee Estimator field within the Short Data panel. The terminal recalculates the daily and projected holding cost in real time as the borrow rate changes.

Setting a Borrow Rate Alert

  1. Click the bell icon next to the borrow rate figure in the Short Data panel.
  2. Set a threshold percentage (for example, 50%).
  3. Tapeboard sends an in-terminal notification and optional email alert when the rate crosses that level.

Monitoring Forced Buy-In Risk

  1. Open the Short Interest tab within the Short Data panel.
  2. Review the Days to Cover figure alongside current short interest as a percentage of float.
  3. When short interest approaches or exceeds available float, the terminal displays a Buy-In Risk warning banner.

Note

A locate confirms share availability at the time of execution. The lender retains the right to recall shares at any time. If the lender closes their long position, the broker executes a forced buy-in regardless of the short seller's open profit or loss.

KEYBOARD SHORTCUTS

Shortcut Action
L Open the Locate & Borrow panel for the active symbol
Shift + L Request a manual locate for an HTB security
B Toggle the daily borrow fee estimator
Alt + A Set or edit a borrow rate alert for the active symbol
Shift + B Copy the current borrow rate to the clipboard
Shift + S Open the Short Interest overlay