how much do you get actually lending out short if you own shares?

Discussion in 'Interactive Brokers' started by klattermusen, Aug 14, 2024.

  1. just noticed borrow fee on GNLN was 600%...i wonder how much you get for actually lending it out if you own shares..i understand some brokers give you a fee ...
     
  2. ktm08200

    ktm08200

    I believe Fidelity gives you half and then keeps the other half. And it's paid out monthly.
     
  3. About half, maybe a bit more, but there’s no guarantee they’ll lend it.
     
  4. tomkat22

    tomkat22

    Half of what?
     
  5. mervyn

    mervyn

    the interest the borrower pays.
     
    MoreLeverage likes this.
  6. tomkat22

    tomkat22

    Huh? The current fee to borrow GNLN is 1014%. That cant be right. Maybe Mr Morse will chime in,this is up his alley.
     
  7. schizo

    schizo

    Why does the broker get to keep the other half? That's theft.
     
  8. mervyn

    mervyn

    why not? i just look, gnln is hard to borrow and foreign, if you want to bet against the stock, hard to find floating shares.
     
  9. Cabin1111

    Cabin1111

    I called Fidelity one time about this. Things like QQQ they would loan out interest at 1/2 of 1 percent...Nothing. For my Toray stock (TRYIY) they were offering 6-12% interest, I think. Toray I bought on the Tokyo Exchange, so it became much easier for Fidelity to make the offer and harder for Fidelity to go buy the stock on a different exchange.

    It's a simple supply and demand for loaning the stock...

    What concerned me (especially with Toray) was what if the company (or stock) got tied up in litigation. You have two stock exchanges, two clearing houses, ADR, a bank, Fidelity, and the other broker in Japan.

    I'm going on 69 next month...Do I really want some small stock holding tied up in the courts for my estate to try and deal with??

    My brother died ten years ago and I was in charge of his estate. He had some penny stock that STILL hasn't been resolved in the courts. We get quarterly statements from Morgan Stanley...Never finished.

    When you can, keep it simple...
     
    zdreg, Picaso, ironchef and 1 other person like this.
  10. tomkat22

    tomkat22

    Holy shit if thats true I'm in the wrong business. LOL. Thats insane to receive that kind of credit just for loaning out a hard to borrow stock.
     
    #10     Aug 14, 2024