Equity Lending
Equity lending is an easy way to benefit more from your stock portfolio by receiving passive income on it. The interest rates you receive will depend on the stocks that can be used for lending and the amounts can change over time.
Stocks in high demand are hard to borrow in marketplaces, therefore, higher the interest rates will be on these.
Easy and flexible activation
You can activate and/or deactivate the service at any time. The stocks will remain yours and you can sell them any time throughout the lending period. The actual lending of stocks/ETFs depends on the market demand and can vary overtime. No lending or revenues can be guaranteed.
What is Equity Lending?
Equity Lending is a service that allows you to lend your stocks and ETFs to other market participants. The market is very often looking into borrowing certain stocks for hedging or short selling. Once you apply for an equity lending, you will earn interests on the lent stocks for all the duration of the loan. But the stocks are still yours and you can sell them at any time.
When you enable Stock Lending, you still assume the risk of the market value of any stocks/ETFs lent out. So, if the price of your lent-out stock gains or declines, that will be reflected in your account value, just as it would be if the stocks were not lent out.
Once you activate the Equity Lending, all eligible stocks/ETFs in your account will become available for lending. You cannot choose which one you want to lend and it is not guaranteed that all the stocks in the portfolio will eligible for lending. During the Equity Lending period, you still are exposed to the market value risk of any stocks/ETFs that are lent out. So, the price change of your lent stock will be reflected in your account value, just as it would be if the stocks were not lent out.