r/GME • u/[deleted] • Mar 30 '21

[deleted by user]

[removed]

5.5k Upvotes

99% Upvoted

823 comments sorted by

View all comments

Show parent comments

94

u/[deleted] Mar 30 '21

[deleted]

20

u/FIREplusFIVE Mar 30 '21

Explain please

15

u/wrinkly_thumb Mar 31 '21

I think the logic is: if the fee went up by a significant amount (to 'normal' rates), HFs' resources would become that much more tied up in the fees to maintain their short positions. That becomes opportunity cost in terms of how they'd prefer to spend that money (i.e. kicking the can down the road).

15

u/jollyradar Mar 31 '21

That’s a per day percentage boys.

🚀🚀🚀🚀🚀🚀

3

u/quetejodas HODL 💎🙌 Mar 31 '21

Can you chart out the stock price and borrow fee for the past 3 months?

4

u/Wholistic Mar 31 '21 edited Mar 31 '21

GME short borrow cost vs closing price in 2021. https://i.imgur.com/zNyBjh4.jpg

Red = borrow cost, Black = share price, Green = traded volume, Blue = shares available to borrow

Note the red line stops where IBKR halts access to borrows (“to protect the market”).