What does the "borrow rate" in the stock lookup on Questrade apply to?

The Borrow rate is holding a position for just one day with an annual interest rate. The Borrow rate is something that fluctuates a lot, so the rates could alter significantly based on the market value. No charge is applied if you borrow it within the time frame. And borrow rate applies to shorting but not while buying.

It's an estimate of the borrowing rate for your investment, as well as when you pay the fee to borrow an investment short; it does not guarantee the availability of the position for the duration you intend to hold the short position.

If you're holding an equity short position with Questrade, the "borrow rate" displayed in your client account will be an estimate of what your day-to-day borrowing costs will be. It is not a guarantee as to what your specific borrow rates will be; however, it does give you an idea of how volatile the rate can be during a day.

The "borrow rate" is determined by your broker based on the fluctuations in short-term interest rates, and they have no control over this charge – it's set at the lender's discretion. The "borrow rate" will fluctuate somewhat independently from our Regular Borrow Rate set out below as it's based on short-term rates.

But the actual cost to holding an investment short is more than just a "borrow" rate: there's also a borrowing fee, as well as you will most likely incur interest if you hold it in a non-registered (taxable) brokerage account.

The borrow rate on Questrade refers to the estimate of how much the brokerage company will charge its investor for borrowing shares.

This is typically calculated by the borrow rate multiplied by the market value and divided by 365 days.

For example, let's say the stock is trading for $10 and you are borrowing $1 million at a 1% stock loan fee. So, your calculation would be ($1 million x 1% / 360).

The Questrade borrowing rate does fluctuate session to session, which is common practice at a wide variety of other financial institutions.

The investment strategy is also referred to as a stock loan fee.

It should also be noted that, as part of the lending agreement, the borrowers will receive voting rights and the right to dividends or other distributions.

For your second question, the borrowing rate generally refers to investors engaging in a stock loan for short selling.