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How is shorting and the brokerage costs of shorting modeled in the portfolio

If I were to short some stocks or say the s&p500, how are the different scenarios modeled

  1. What happens to the cash I receive from the proceeds. Does the cash get added to the portfolio?
  2. How are brokerage costs like interests, etc modeled.
  3. Other eventualities associated with shorting stocks.
4 responses

Cash is added to your portfolio, other than that there is no extensive modeling for things such as borrow costs, availability, or recalls

one additional question: is there a margin issue when shorting stocks.

Shorting uses the same or more margin as going long.

In my models, I have had to add these in myself. For lack of a real datasource, I guesstimate interest/margin rates over time periods and use those. I try to over-estimate margin rates.