Anyone using stock lending option on Robinhood?

[Cool]

What are pros and cons?

[Konebhar6]

On 7/7/2023 at 9:32 AM, Cool said:

What are pros and cons?

I am using. No cons. You get some amount if someone lends your stock. Very low sum. Like a 1$. 

Nothing to lose.

[Cool]

7 hours ago, Konebhar6 said:

I am using. No cons. You get some amount if someone lends your stock. Very low sum. Like a 1$. 

Nothing to lose.

Okk, thank you bhayya

[Galactus]

They cover/short the stock that you loan with your own money, so they make profits and pay peanuts to you while your stock gets dropped like a brick, if you still want to lend go ahead and do it for the peanuts

also if you want to sell, I think it takes a little while for the stock to be available to sell so you lose any price advantage etc

[Konebhar6]

28 minutes ago, Galactus said:

They cover/short the stock that you loan with your own money, so they make profits and pay peanuts to you while your stock gets dropped like a brick, if you still want to lend go ahead and do it for the peanuts

also if you want to sell, I think it takes a little while for the stock to be available to sell so you lose any price advantage etc

You made a good point. Never saw from that angle.

Previously, When you shorted a stock, it would be taken from that Broker's pool.

Previous rule: # of stocks shorted by customers under that Broker <= # of stocks that customers under that broker owned

Did they make a rule change where our consent is needed? Is that reason for lending options?