Rebate (stock loan)
🟢 plain english
The interest a short seller EARNS on the cash collateral they post when borrowing shares. Here is the one-sentence read: a POSITIVE rebate means borrowing is easy — the opposite of squeeze conditions.
🔬 technical
Rebate and Borrow fee are two views of one lending transaction. When inventory is plentiful, the lender pays the borrower most of the collateral interest back and the rebate stays positive. When shorts crowd in and shares get scarce, the rebate goes negative — the borrower is now paying for the privilege — and that sign flip is the squeeze precondition worth watching. A stock can rise sharply all day; if its rebate never leaves positive territory, the borrow market is saying nobody is trapped.