Short Interest & FTDs
Cost to Borrow & Utilization
The Cost of Shorting
Short sellers pay interest to borrow shares. This "cost to borrow" (CTB) varies based on supply and demand for borrowing shares.
Cost to Borrow
Low CTB (< 1%): Easy to borrow, low demand
Medium CTB (1-10%): Moderate demand
High CTB (10-50%): Hard to borrow
Extreme CTB (50%+): Very hard to borrow, squeeze potential
Medium CTB (1-10%): Moderate demand
High CTB (10-50%): Hard to borrow
Extreme CTB (50%+): Very hard to borrow, squeeze potential
Utilization
Utilization = Shares on Loan ÷ Shares Available to Borrow
- Below 50%: Plenty of shares available
- 50-80%: Elevated
- 80-100%: Very limited supply
- 100%: No shares available to borrow
- Below 50%: Plenty of shares available
- 50-80%: Elevated
- 80-100%: Very limited supply
- 100%: No shares available to borrow
SUTOK shows utilization when data is available. 100% utilization with high CTB is a prime squeeze setup.
Key Takeaways
- CTB = interest rate to borrow shares
- Higher CTB = harder to short, squeeze potential
- Utilization shows % of borrowable shares used
- 100% utilization = no shares to borrow