Warning: Locking up UNVC with a high sell price o
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Posted On: 07/23/2021 12:13:05 PM
Warning: Locking up UNVC with a high sell price order is a myth (it does nothing in terms of whether your shares can be loaned for shorting by your broker or not) and doing this is not a good idea and could result in your selling UNVC shares when you weren't planning on it.
Here is the truth about if/when your broker can loan shares for shorting:
7/1/21
riskreward007 post #48990
I just called Etrade and asked the same question:
What is their loan policy for shares in different types of accounts?
The Etrade rep's answer was similar to what Bumpercars posted from his broker:
1) Shares in a cash account or a margin account (with no margin debt) where cash is used to purchase shares can't be loaned out for shorting. So a margin account (with no margin debt) functions like a cash account with regards to whether shares can be loaned or not. Shares in a cash account can't be loaned for shorting.
2) If you have a margin account and have margin debt (used to purchase more shares) all shares of any stock in that account can be loaned out by Etrade (without any payment to you).
3) If you want to have an account where you get paid for loaning out shares, Etrade has a special account called "Cash Account Fully Paid Lending" In this account they pay the customer for the loaned shares in a 60:40 ratio, with 60% of the loan fee going to the customer and 40% going to Etrade.
4) Again: "Locking up" shares with a high sell price order does absolutely nothing in terms of whether they can or can't be loaned out or not by your broker.
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Univec Conglomerate Inc (UNVC) Stock Research Links
UNVC Message Board
Company Profile
Time & Sales
Recent News
Filings
Financials
Buy Rating
Read More: https://investorshangout.com/post/view?id=617...z71SS5Cocl
I just called Etrade and asked the same question:
What is their loan policy for shares in different types of accounts?
The Etrade rep's answer was similar to what Bumpercars posted from his broker:
1) Shares in a cash account or a margin account (with no margin debt) where cash is used to purchase shares can't be loaned out for shorting. So a margin account (with no margin debt) functions like a cash account with regards to whether shares can be loaned or not.
2) If you have a margin account and have margin debt (used to purchase more shares) all shares of any stock in that account can be loaned out by Etrade (without any payment to you).
3) If you want to have an account where you get paid for loaning out shares, Etrade has a special account called "Cash Account Fully Paid Lending" In this account they pay the customer for the loaned shares in a 60:40 ratio, with 60% of the loan fee going to the customer and 40% going to Etrade.
4) Again: "Locking up" shares at a high sell price does absolutely nothing in terms of whether they can be loaned out or not by your broker.
Read More: https://investorshangout.com/post/view?id=617...z71SRrmd6L
Here is the truth about if/when your broker can loan shares for shorting:
7/1/21
riskreward007 post #48990
I just called Etrade and asked the same question:
What is their loan policy for shares in different types of accounts?
The Etrade rep's answer was similar to what Bumpercars posted from his broker:
1) Shares in a cash account or a margin account (with no margin debt) where cash is used to purchase shares can't be loaned out for shorting. So a margin account (with no margin debt) functions like a cash account with regards to whether shares can be loaned or not. Shares in a cash account can't be loaned for shorting.
2) If you have a margin account and have margin debt (used to purchase more shares) all shares of any stock in that account can be loaned out by Etrade (without any payment to you).
3) If you want to have an account where you get paid for loaning out shares, Etrade has a special account called "Cash Account Fully Paid Lending" In this account they pay the customer for the loaned shares in a 60:40 ratio, with 60% of the loan fee going to the customer and 40% going to Etrade.
4) Again: "Locking up" shares with a high sell price order does absolutely nothing in terms of whether they can or can't be loaned out or not by your broker.
FacebookTwitterLinkedInCopy LinkMore
(4) (0)
Univec Conglomerate Inc (UNVC) Stock Research Links
UNVC Message Board
Company Profile
Time & Sales
Recent News
Filings
Financials
Buy Rating
Read More: https://investorshangout.com/post/view?id=617...z71SS5Cocl
I just called Etrade and asked the same question:
What is their loan policy for shares in different types of accounts?
The Etrade rep's answer was similar to what Bumpercars posted from his broker:
1) Shares in a cash account or a margin account (with no margin debt) where cash is used to purchase shares can't be loaned out for shorting. So a margin account (with no margin debt) functions like a cash account with regards to whether shares can be loaned or not.
2) If you have a margin account and have margin debt (used to purchase more shares) all shares of any stock in that account can be loaned out by Etrade (without any payment to you).
3) If you want to have an account where you get paid for loaning out shares, Etrade has a special account called "Cash Account Fully Paid Lending" In this account they pay the customer for the loaned shares in a 60:40 ratio, with 60% of the loan fee going to the customer and 40% going to Etrade.
4) Again: "Locking up" shares at a high sell price does absolutely nothing in terms of whether they can be loaned out or not by your broker.
Read More: https://investorshangout.com/post/view?id=617...z71SRrmd6L
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