Why Your Stocks Might Not Be Lent Out
1. Borrow Demand Varies by Stock
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Only stocks with active short-selling demand get lent. If your shares aren’t in high demand (e.g. low short interest, high float, or stable price), they may sit idle.
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Even popular tickers may not be lent if demand is already met by other accounts.
2. Brokerage Prioritization
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Brokers often prioritize accounts based on:
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Size of position
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Timing of enrollment
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Internal lending algorithms
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If someone else holds more shares or enrolled earlier, their shares might be tapped first.
3. Account-Specific Factors
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Shares must be fully paid (not on margin) and settled.
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If your shares were recently purchased or transferred, they may not yet be eligible.
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Some brokers exclude certain account types (e.g. retirement accounts or trusts).
4. Stock-Specific Restrictions
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Not all stocks are eligible. For example:
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Foreign-listed securities or low-liquidity tickers may be excluded.
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Some ETFs or SPACs may be lent more aggressively due to volatility.
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5. Timing & Market Cycles
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Lending demand fluctuates daily. A stock might be lent today and idle tomorrow.
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If you check your dashboard during a lull, it may appear inactive even if it was lent previously.
