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A "wash sale" happens when a trader sells shares at a loss and buys similar ones within a 61-day period (30 days before and after the sale). The loss is added to the cost basis of the replacement shares. When those shares are sold, the disallowed loss is recognized. The holding period of the original shares is combined with the new ones'. For more info, visit our website.

Trading

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Not all eligible shares in the Stock Yield Enhancement Program are guaranteed to be loaned, depending on market conditions and MEXEM's discretion. Clients with financing deficits may have 140% of the deficit un-segregated, making them ineligible for lending. Refer to the FAQ for more information.

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Non-residents face withholding taxes on U.S. stock dividends. A finalized W8 form can reduce, but not eliminate, tax if a treaty exists with the holder's tax country. Dividends on U.S. ADR shares don't qualify for reduced rates. Consult a tax advisor for refund or tax credit advice.

Trading

To enable the shortable feature in TWS, click the wrench icon in the upper right corner to open the TWS Configuration window. Scroll down to Quote Monitor and Default Layout options. Click on the Shortable column and click Add and OK. The Shortable column will now display real-time information on whether a stock is shortable, the quantity of shares available, and the borrowing cost. The colors indicate availability: Red means not available, dark green means shares will be located, and bright green means at least 1,000 shares are available. Mouse-over tooltips provide more details on shares and borrow rates.

Fees & Interest

Selling stock short with MEXEM involves borrowing shares for delivery to the purchaser. The cost to borrow depends on supply and demand. MEXEM offers tools to estimate this cost, like the Shortable column and the SLB Rates tool in TWS. These rates fluctuate daily and are finalized at day's end. More information about calculating borrowing costs can be found on our website.