Limit Order to prevent your stock being 'loaned out'24 Jun 2021 12:51
LTH, this is a cut n paste from Pro on ADVFN today 24/06/2021 - please read the thread around that timestamp as I had no idea of shorters being abole to borrow YOUR holding and short it against you................
Yes, one of the vagaries of the market is that if you hold your stock in a nominee account with III or HL or IG or any other them..........they are "allowed" WITHOUT your consent, to lend your stock to shorters for a weekly/monthly fee and make a profit by someone selling your stock to move the price against you.
Thats how corrupt it all is.
You can stop your broker from lending your stock, you do this by setting a "limit sell order" on your stock, with an infinite validity if allowed, if not then set for 90 days or 60 days and keep renewing it.
EG if you hold 100K of TXP then set a "Limit Sell order" for 100K at 1000p a share.
Once your stock has a "live" order on it, your broker can no longer loan this out and must keep the stock in their own account.
Sadly most private investors dont know all this and their stock is loaned out and sold against them.....they are in fact supporting the shorters making them lose money on their long positions - and all the while the brokers holding the nominee stock are making money loaning it out and using it against the actual owners of the stock.
So if you hold your TXP in a nominee account and not actual certificates - place a Limit Sell Order on it......and that prevents it being "loaned" out to shorters.
GLA