just playing around in IBKR I became aware of this situation… let's take a hard to borrow stock with 100% utilization and high borrowing fee. For example, let's say $GETY. 100% utilization, almost 1000% borrow fee. Impossible to short sell, no locates at all
But, for fun, I sold short one CFD (equivalent to 1 share basically), for a 0.05% overnight fee. In Europe, so no legality problems
What the hell? Did I just discover a way to circumvent insane borrow fees? Or was this just dumb luck and wouldn't work with a more seriously sized position?
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