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Short Selling Mechanics
Locate
Definition
The process of confirming a lender for shares before executing a short sale. Australian law (Corporations Act s1020B) requires sellers to have a securities lending arrangement in place before they short — a 'locate' is the broker's confirmation that shares are available to borrow.
Related Terms
Securities Lending
The process by which shares are borrowed from institutional holders (like superannuation funds) to facilitate short selling. Lenders receive a fee for making their shares available.
Naked Short Selling
Selling shares short without first borrowing them or securing a right to deliver them. Naked short selling of listed securities is prohibited in Australia under section 1020B of the Corporations Act 2001.
See short selling in action
Explore real-time ASIC short position data for ASX stocks.