Can you loan out stocks bought on margin at IB?

[Maverick2608]

Can you loan out stocks bought on margin at IB and receive borrow fee?

I believe the answer is no.

 

[HobbyTrading]

No. See here: https://www.interactivebrokers.com/en/pricing/stock-yield-enhancement-program.php

Earn extra income on the fully-paid shares of stock held in your account ...

 

[mervyn]

I believe you can, I have done it. I don’t think IB distinguishes which stocks are on margin and which one is fully paid, as long as you have the stocks (unless you only have one stock).

 

[zdreg]

I believe you can, I have done it. I don’t think IB distinguishes which stocks are on margin and which one is fully paid, as long as you have the stocks (unless you only have one stock).

No. See here: https://www.interactivebrokers.com/en/pricing/stock-yield-enhancement-program.php

Both of you need to read carefully before posting.
Yes stock enhance program is eligible with marginable stock under the following condition:
Eligibility
The Stock Yield Enhancement Program is available to eligible IBKR clients2 who have been approved for a margin account, or who have a cash account with equity greater than USD 50,000 (or equivalent).

Stocks that are eligible to be loaned out are all "fully-paid" stocks (stocks not held on margin) and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).

 

[Maverick2608]

… and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).

Thank you. Do you know what the logic of the latter is?

 

[mervyn]

Both of you need to read carefully before posting.
Yes stock enhance program is eligible with marginable stock under the following condition:
Eligibility
The Stock Yield Enhancement Program is available to eligible IBKR clients2 who have been approved for a margin account, or who have a cash account with equity greater than USD 50,000 (or equivalent).

Stocks that are eligible to be loaned out are all "fully-paid" stocks (stocks not held on margin) and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).

I had loaned out tech stock on a "margin" althought I don't over-leverage on margin much. The stock is considered fully paid.

 

[TheDawn]

Can you loan out stocks bought on margin at IB and receive borrow fee?

I believe the answer is no.

No.

Eligibility

Stocks that are eligible to be loaned out are all "fully-paid" stocks (stocks not held on margin) and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).

https://www.interactivebrokers.com/en/pricing/stock-yield-enhancement-program.php

 

[zdreg]

No.

Eligibility

Stocks that are eligible to be loaned out are all "fully-paid" stocks (stocks not held on margin) and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).

https://www.interactivebrokers.com/en/pricing/stock-yield-enhancement-program.php

Everything in your post was previously included in two other posts.

 

[TheDawn]

Everything in your post was previously included in two other posts.

I know. Somebody posted the answer before you as well and yet you still posted the same thing cuz at the time when we were posting our answer, we didn't see the previous posts. They only showed up after we posted our answers.

 

[zdreg]

I know. Somebody posted the answer before you as well and yet you still posted the same thing cuz at the time when we were posting our answer, we didn't see the previous posts. They only showed up after we posted our answers.

Not true.
I saw the poster's link. I did not post the IB link. then I read the link from a poster. I posted the words in the IB link because it was obvious that one poster misinterpreted what was in the link and the other person probably never read the requirements.