Core terms
Stock Locate
A locate is the pre-short-sale borrow check under Regulation SHO: borrowing, arranging to borrow or documenting reasonable grounds that shares can be borrowed for timely delivery, subject to exceptions.
What traders should verify
Read the broker’s quantity, validity, acceptance and cancellation terms. Separate a locate quote from acceptance, borrowing shares and the eventual order fill; fees depend on the broker’s terms.
Do not conflate
A locate is neither a stock purchase nor a guaranteed execution. Paying a locate fee does not remove a short-sale price restriction or trading halt.