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  1. Home
  2. Glossary
  3. Fails to Deliver
GlossaryMarket Structure

Fails to Deliver

When a seller does not deliver shares to the buyer by the settlement date. Fails (FTDs) can stem from naked short selling but also from ordinary operational or long-sale delays; the SEC publishes the data.

Appears in these guides

  • Naked Short SellingMarket Structure

Related terms

Cede & CoClearing HouseCost to BorrowDark PoolDays to CoverDRSDTCCExchangeHigh-Frequency TradingLiquidity

Related lessons

advancedMarket Structure

Reading Short-Selling Data: Short Interest, Short Volume & Cost to Borrow

Three numbers get quoted endlessly to judge how heavily a stock is shorted — short interest, short volume, and cost to borrow — and two of them are constantly misread. Learn what each actually measures, why short volume is NOT short interest, why short interest can legitimately exceed 100% of the float, and why the borrow fee is often the most honest real-time signal of the three.

intermediateMarket Structure

Short Selling

How do you profit when a stock falls? You borrow it, sell it, and buy it back cheaper. Short selling is one of the market's most powerful — and most dangerous — mechanics: theoretically unlimited losses, a borrow fee, dividends you owe, and the ever-present risk of a short squeeze. Learn exactly how it works, where the borrowed shares come from, and why the risk is shaped so differently from going long.

Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.