IBKR "Stock Yield Enhancement Program"

R

Riches1

New member
From what I understand, this will allow you to lend out fully paid stock shares to other users, and you can generate some income from that.

From the point of view of someone who plans to invest long-term (10-20+ years), and to simply add some money to the portfolio each month: Would this option potentially make sense for me? How much additional revenue could be expected if I select this, and how high is the risk of losing money?

Thanks!
 
Yes, you are correct :)

It's pretty much impossible to guess how much you will give since this will vary a lot from your portfolio. If you have very broad ETFs, you will probably not earn much. But if you have often shorted stocks, you may earn a significant amount of money.

There is a very slight risk that you lose your stock, but in this case, you should get back the collateral. Unless, there are huge market swings, you should not have much risk.
 
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