Stock Borrowing

Stock borrowing is a product created by the Athens Derivatives Exchange, in order to enable investors of falling expectations to "bet" on the possibility of a price decline on selected shares of large and medium capitalisation. Through stock borrowing, the investor borrows in the form of contracts (contract size: 100 shares) the amount of shares they wish to sell in this title at the rate, at which the responsible HELEX department lends the specific share on the specific day. If the share drops and the expectation is confirmed, the borrowed shares are bought back at lower - than the sale - levels, resulting in profit. Otherwise, the difference between the buying and selling price of the shares results in loss. The shares are then returned and the open stock borrowing position closes. Within three working days (T+3) from the date of purchase (buy to close) on the spot market, it is possible to return the borrowed contracts.