Webull stock lending income program
Has anyone tried to lend their vested stock to webull for interest? Risks?#personalfinance #investments Here is what they say about it The Stock Lending Income Program provides you with the opportunity to earn extra income on fully-paid stocks held in your account by allowing Webull to borrow certain stocks. While your shares are on loan, you will be paid an income that is accrued daily and credited to your account on a monthly basis. Once you have participated in this program, Apex, our clearing firm, will identify fully-paid stocks in your account as in-demand according to the demand of the market. The interest rate is determined by the market; thus, it may vary widely daily. Your income from lending your stocks is calculated using this equation:
Some article said that, when you lend say, 1 share of TSLA at $800, the broker will reserve an amount of collateral, presumably less than $800. Then if at a later date, TSLA is worth $10000 but the broker is bankrupt, you will be getting the collateral back, not the FMV.
Can you post that article? This looks promising thus far
Interesting. I personally just sell OTM covered calls on my Tesla shares and keep the premium