Can I earn interest by lending GME on IBKR at a higher rate than the borrow rate?

5 answers

• Nov 24, 2021 · 3 years ago
  Yes, it is possible to earn interest by lending GME on IBKR at a higher rate than the borrow rate. This process is known as securities lending. When you lend your GME shares to IBKR, they can lend them to other traders who want to short sell GME. In return for lending your shares, you will receive interest payments. The interest rate you earn will depend on market demand and the availability of GME shares for lending. However, it's important to note that securities lending involves risks. The borrower may fail to return the shares, and there is a possibility of loss if the value of GME decreases significantly. It's advisable to carefully consider the risks and consult with a financial advisor before engaging in securities lending on IBKR.
  748374
• Nov 24, 2021 · 3 years ago
  Absolutely! You can earn interest by lending GME on IBKR at a higher rate than the borrow rate. IBKR offers a securities lending program where you can lend your GME shares to other traders who want to short sell GME. In return, you will receive interest payments. The interest rate you earn will depend on market conditions and the demand for GME shares. It's a great way to generate passive income from your GME holdings. Just make sure to understand the risks involved, such as the potential for the borrower to fail to return the shares and the possibility of loss if the value of GME declines.
  597199
• Nov 24, 2021 · 3 years ago
  Yes, you can earn interest by lending GME on IBKR at a higher rate than the borrow rate. IBKR has a securities lending program that allows you to lend your GME shares to other traders. This program offers competitive interest rates, which are often higher than the borrow rate. By participating in securities lending, you can earn passive income on your GME holdings. However, it's important to note that securities lending carries certain risks. The borrower may default on returning the shares, and there is a possibility of loss if the value of GME drops significantly. It's recommended to carefully assess the risks and consider your investment goals before engaging in securities lending on IBKR.
  701176
• Nov 24, 2021 · 3 years ago
  Yes, you can earn interest by lending GME on IBKR at a higher rate than the borrow rate. IBKR's securities lending program allows you to lend your GME shares to other traders who want to short sell GME. In return, you will receive interest payments. The interest rate you earn will depend on market conditions and the demand for GME shares. It's a great way to potentially increase your returns on GME holdings. However, it's important to be aware of the risks involved, such as the possibility of the borrower failing to return the shares and the potential for loss if the value of GME decreases. It's always recommended to do thorough research and consult with a financial advisor before participating in securities lending.
  726146
• Nov 24, 2021 · 3 years ago
  Yes, it is possible to earn interest by lending GME on IBKR at a higher rate than the borrow rate. IBKR offers a securities lending program where you can lend your GME shares to other traders who want to short sell GME. In return, you will receive interest payments. The interest rate you earn will depend on market demand and the availability of GME shares for lending. However, it's important to understand the risks involved. There is a possibility of the borrower defaulting on returning the shares, and you may incur losses if the value of GME declines significantly. It's recommended to carefully evaluate the risks and consider your investment objectives before participating in securities lending on IBKR.
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