This video is all about the new share lending feature available for the first time to retail investors from Trading 212. We’ll cover what it is, how it works, the risks, and even take you through the screens to show you how to get started.
📎 Link to the video mentioned by Tom: https://www.youtube.com/watch?v=E42XA0g_wrY
⌚ Timestamps:
0:00 – Intro
1:00 – What is share lending?
2:15 – How does it work?
5:00 – Can you exercise voting rights whilst shares are lent out?
5:10 – Who usually borrows shares and why?
6:20 – Do you still own the lent-out shares?
6:38 – What are the risks?
7:34 – Where can you learn more about share lending?
7:50 – How to set it up?
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🍿 Enjoyed the video? There’s more:
1. https://www.youtube.com/watch?v=zwc8uaWvpfo
2. https://www.youtube.com/watch?v=_IAnZD4a7OQ&t=1s
3. https://www.youtube.com/watch?v=XVIeo-wq9-c
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When investing, your capital is at risk. Investments can fall and rise and you may get back less than you invested. The information contained within the video was correct at the time of recording but may have since changed.
I just enrolled. Waiting to see what part of my portfolio will be lent out and which part.
Let us know how you get on, please.
@Tk Muns As Tom said in the video – you’ll need to wait up to 4 days. So I am waiting for now. 😀
If we could turn it on individually per stock it would be fine, but on some i don’t want it.. so until then, no go for me. the lending part is almost always used for people shorting your stock.. so screwing you over.
While it’s not available as an option, you can opt-out for the share lending anytime you want.
Like AMC? 🦍
There always a risk the lender won’t give them back, but you can buy and sell when you want to. Confused
You can buy and sell your shares at any moment with Trading 212.
In the rare cases where the borrower becomes insolvent and we’re unable to return your lent shares, you’ll receive collateral that’s 102% or more of the value of the lent shares.
@Trading 212 would this be automatically done for you or would you need to spot it your self and then clam?
@Trading 212 the above comment asks a very good question! Will this be done automatically or would we need to spot it ourselves and then claim it?
@James Rees the lack of response may say it all.
@Craig Cogley hmmm, I hope not, that would be a pretty disappointing way of dealing with it
So we can lend our shares to be shorted by someone else but don’t have the option to short the stock ourselves on T212?
Plenty of other platforms 🥳🥳🥳🥳
There is “most requested features” list on the Trading 212 community forum. You can add it there, currently is not in the top 10. Multicurrency accounts tops the list and they just released it.
Will this ever be available on the Isa?
ISA accounts are not eligible for share lending due to HMRC regulations.
No
I would rather have the option to turn it on on individual stocks. I might do it when it gets to Spain though, it might help me speed up the process and I can always cancel the lending in order to have the voting rights after
Share lending on individual stocks is not available, but we will keep your preferences in mind. Thanks for sharing ✌
Not worth doing unless they split the profits with you. Interest splits mean almost nothing
Hello. I have Hyllion bought at $1.83 and I put an selling limit order at 1.85, when the price has reached today 3 times why it didn’t sell them ? The price reached $1.86 and still not sell them why ? And why I’m buying more expensive then the price that shows me ? The price was $ 1.80 and I presed buy and it buyed at $1.83 why ?
We want to take a closer look into the case and provide you with the detailed calculations of the position.
Would you mind reaching us at info@trading212.com from your associated email address, with the position ID? If you already emailed us, please share the ticket ID.
Weird because there’s no such option for me and I’m in the UK 🤔
Just a question –
1 – Can i cancel the lent shares to regain voting rights
2 – if the borrower goes bust, the collateral will only be paid at the market rate the borrower lent them for. So if im down 50% on my purchase price, ive lost out as they will not pay me the original purchase price. Please confirm.
3 – what percentage of borrowers go bust?
Sure, let us shed some light:
1. Our UK clients can enable or disable the option via the ‘Earn interest on your shares’ section in the account’s menu.
2. The collateral gets adjusted daily. If you lent $100 worth of TSLA and in a month that TSLA’s now worth $10,000, the collateral you’ll receive if the borrower doesn’t return the shares will be at a minimum 102% of $10,000, so $10,200.
3. We’ve never experienced a failure to return shares, but that doesn’t mean it’s impossible, just extremely unlikely.
@Trading 212 This is very good to know, thanks!
Why’s amc interest at 300% 😂
Is there a way we can look at the projection again?
Hello if I invest 100 and it goes down to 80. I started lending when it was at 100 Gbp. Will the collateral be 102% for 100 or for 80
Promo_SM 😌
Can you do this with shares held in a trading 212 ISA
ISA accounts cannot be enrolled and earn interest through share lending due to HMRC regulations.
Excellent – All your video’s are so clear and your answers to questions so quick. Thank You
Hi can you please clarify broadly speaking who the shares will be lent to other than buyers shorting the stock. Some examples would be great thank you.
Usually, securities are lent to pension and insurance funds, ETF issuers, banks, and brokers.
I will wait and see what happens with $MMTLP between the Security and exchange commission and Congress before I invest another penny.. it is very clear that the market is manipulated.