Can you close the shares lending at any moments ?
You can disable it any time by pressing âdisable lendingâ button.
Do you get everything back after a couple of days ?
The shares never leave your account. From your T212 account it is basically invisible. The shares may be lent out but in terms of your account you can buy or sell shares at any time irrespective of the lending. Thus if you had 100 Google shares and 50 got lent out for shorting your account will still show that you have 100 shares and you can add to them or sell all of them or some of them at any time. It makes no difference at all to your account except that you will earn interest if shares are lent and technically there is a risk.
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Itâs pretty the exact same as it is currently; your shares have always been up for lending, the only differences now are that:
- you get half the interests from it;
- you may choose to disable it.
But all that time until now, your shares were already being lent out, under the same terms.
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This is the correct way round, right?
Because I am âlendingâ shares, away from meâŚ
If it says I have âborrowedâ shares, that sounds more like I would be receiving them, which is not the case here.
I think itâs correct but I was confused earlier in the thread when someone said âall shares are up for lending but not every share is being borrowedâ, So then you would expect under âlent sharesâ it to list all shares as they are all up for lending. So it actually is âlent shares that someone has borrowedâ but that is far too wordy.
A share being lent and being up for lending isnât the same though 
You had be noting that you were disappointed not all of your shares were being lent out.
They are all offered to be lent out, but how many of them actually are depends on borrowerâs demand, which is out of your/T212âs reach, naturally.
The âShare Lendingâ section in the App gives a summary of all the shares that are currently borrowed.
Does this clear up the wording confusion I may have caused?
Yes I was disappointed not all shares were lent out but not that they werenât up for lending. I think we agree how it works but as an analogy itâs like I run a cake shop and said âI wish I sold more cupcakesâ then you said âall cupcakes are for sale, itâs up to people to buy them or notâ. Well you just stated something obvious and doesnât address what I (tried to) say. I did not say âI wish all my cupcakes were for saleâ, in that case your response makes sense. It could be wording thing, maybe I should have said âI wish more of my shares up for lending were borrowed by peopleâ to make it clearer but I thought it was obvious âlend out all my sharesâ means people borrowing them rather than they are put up for lending by people.
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We have to remember that when shares are lent it means that the company is being shorted.
Iâm not taking issue with your comment but wondering why you would say that you wish more of your shares were being âborrowedâ because this means that either more of your investments are being shorted or shorting on particular investments is increasing/strong
if I had a 20k portfolio and only 1k is being lent out then Iâm not getting much interest
if all 20k was lent out then I would make a lot more interest, we are talking a lot of money difference. Wouldnât I want to make more money?
also CSH2 is being leant out for me, the safest stock around, why would that be shorted?
Shorting isnât the only reason for borrowing share, but it is indeed the most widespread.
I have no issues with other investors holding different beliefs on the valuation of my investments, and gracefully collect interests from their short position.
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@trader787 yes it is nice to get some interest but you seem to be missing the fundamental point that you are getting interest from people shorting your investments so would you be happy getting 3% interest (just using a nominal figure) if your investment is dropping 20%?
I have no idea about CSH2 and as @Zergui says there are different reasons for borrowing but my general point was that lending is most commonly used for shorting (I donât have a significant issue with shorting) so I was questioning why you would be want your investments to be shorted because this implies others have a strong view that the price is going down at least short term. Yes people shorting often get it wrong. Yes if I believe in a share I will hold despite it being shorted. Yes holding while others short can result in big gains for the longs (eg if there is a short squeeze). Thus acknowledging the diversity of issues involved with investing but still questioning a basic view of (paraphrasing) âIâd like more of my investments to be shortedâ
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Will rephrase for myself, canât talk for @trader787 ;
Personally any money I have invested comes from a strong belief in the fundamental of the business, coupled with a strong belief in a miss-pricing at the time of the purchase.
High short interests only increases my expected yield
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I agree. Investing is, in part, about looking for situations where the market is not correctly pricing a stock. Iâm going to give up on this discussion I was not paraphrasing you but Traderâs comment that as a general position he would like more/all of his investments/shares to be lent (not simply being available but actually being lent out). It seemed to me that this comment fundamentally missed what lending is.
I havenât seen how much âinterestâ is paid from T212 facility but I am assuming that it will be extremely small and thus irrelevant to my overall return or decision making. I say this simply because only a percentage of companies will be shorted at any time and then only a fairly small portion of the companies shares are shorted. Thus if shorting only equates to 0.1% of a companies shares I assume that only 0.1% of my shares will be lent out by T212 (and this assumes that T212 lending is proportionate to the overall markets demand for lending) so I will get 3% interest on 0.1% of my shares in X% of my investments (ie how many are being shorted). So lets say 5% of my investments are shorted overall this equates to 0.00015% return on my portfolio
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you had a fair point, and I didnât really look into it and understand that interest came from mainly shorting. I wouldnât want to have a crazy portfolio built up of heavily shorted equities or change my holdings based on hope of lending and if shorting was the only reason for lending that makes sense.
but as we have established the only reason for lending is not just for shorting so I am hoping my stable and large cap based portfolio is completely lent out for âwhatever reasonâ - odds of it happening probably slim but can always hope.
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For most stocks, overall, it is mostly irrelevant.
And it should not impact your investment decision, it really is a âsmall bonusâ on top of it.
I did manage to snatch the 300% on AMC while the CFD short hedge costed me only 10.5%, so I went all in on it for a few days 
@WakeMeUp I kinda get the point your trying to make or where youâre coming from, as regards to the shorting aspect.
My response is that-- there many bigger avenues like (vanguard & Blackrock) to borrow and short a stock/company âŚso the investment dropping 60% will happen with or without any of us here on the forum.
if thatâs the case, youâd better of all of your stocks of a particular company to be lent out, so you can make the most out of it.
I agree that the funds are often the main source of equity for shorting (ie one lends to another). This only further highlights my basic point. Shares from retail investors (ie from the Invest accounts in T212) will generally only account for a fraction of the shorts in the market. Thus only a tiny fraction of anybodyâs shares is likely to be lent out and this the amount of âinterestâ is probably going to be ridiculously small (in the context of somebodies portfolio).
If you ever get to the situation even remotely close to:
then youâre potentially in big trouble. It means the volume of shorts on that company is absolutely huge so the company is probably in a dire situation - or there is going to be an absolutely massive short squeeze so youâll make a fortunate - but the reality is that it is extremely unlikely that a large percentage of anybodyâs shares in a single company will be lent out at any point in time.
Iâve lent approx ÂŁ6,500 shares over 2-3 days, tho over ÂŁ320k of portfolio is available to be lent.
Iâve earned approx 11p per day in interestâŚthere doesnât seem to be any incentive here.