So lets pretend I was short TSLA (as an example) and lets say TSLA at $30 started out with a borrow cost of 33% and appreciated 200%. I’m trying to get a sense of how to calculate the borrow cost and how often it’s repriced and how it works.
If TSLA was $30 and borrow was 33%, am I paying $10 a year annualized even if TSLA goes to $40 the next day or am I now paying 33% of $40?
Just trying to get a sense of the actual cost of borrow when shorting a stock. If there’s any good read on this I’d appreciate it.