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.

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