What is the cost associated with short selling?

For a short position, you need to borrow shares of a company before you sell them. The cost associated with a short sale is the fee for borrowing the stocks from the respective company. The stock loan rate changes daily based on market conditions. Similarly to interest on margin trading, it is calculated daily and charged daily.

Daily Margin Interest (Short Position) = The Daily Market Value of the borrowed stocks when the market closes * stock loan rate / 360

Note:

1. The stock loan rate of a counter may vary across counters and is dependent on the availability of the shares.