Are you refering to brokers borrowing between themselves or someone like me (individual) borrowing from broker?
For individual someone who owns the shares has to agree to make them available in the first place for shorting. And they do receive interest from the broker.
Though ASX is relatively small volume wise there isn't really that much to short except top 100 and then the volumes are light compared to major overseas markets.
Anyway that's how I've always worked shorts, never traded CFDs and wouldn't want to.
Kat..
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