Re:“WSB veterans know that they're making a suicide charge f...
by rspeele on Tuesday February 02, 2021 @02:59PM
(#26005791)
Yeah, I don't mean to imply that this is necessarily happening to anybody who's holding a stock. It depends on your broker and the terms you've agreed to.
On some brokers it's an opt-in thing and you get to reap the rewards (interest) of lending out your shares. A friend of mine has been doing this with QuantumScape stock and collected a sizeable amount just from lending it through its December run-up, in addition to the direct gains.
My impression is that the zero-fee brokers like RH are the ones more likely to do this without your opt-in consent (of course you do agree to it across the board in their terms), but I'm not an expert.
Re:“WSB veterans know that they're making a suicide charge f...
by klodolph on Tuesday February 02, 2021 @03:30PM
(#26006202)
I think Robinhood will loan out your stock and keep the money. This and sending order flow to Citadel are how Robinhood makes money, instead of from commissions.
On some brokers it's an opt-in thing and you get to reap the rewards (interest) of lending out your shares. A friend of mine has been doing this with QuantumScape stock and collected a sizeable amount just from lending it through its December run-up, in addition to the direct gains.
My impression is that the zero-fee brokers like RH are the ones more likely to do this without your opt-in consent (of course you do agree to it across the board in their terms), but I'm not an expert.