In leveraged products, the number of shares to be shorted must be borrowed. A share loan will normally be subject to a borrowing cost measured in% p.a. of the value of the shares. This cost is therefore also reflected in products that provide a short exposure to equities or stock indices.

Note that the borrowing cost will depend on the number of times the shares in question have been shorted. For a x2 product, e.g. the borrowing costs are calculated twice (since shares are shorted for twice the amount of the product itself), for a x3 product the borrowing costs are calculated three times, etc.