# Brokers lending shares to short sellers



## Rusty Reddog (26 November 2015)

Don't you hate when you hold BHP shares which halve in value, and brokers like Commsec lend your shares to short sellers and charge up to 10% for the privilege.


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## Wysiwyg (26 November 2015)

There has been knowledge of the natural resource mining cycle being over for a long time so selling short is taking advantage of the cycle downturn in regards to BHP. Will you hold stocks in decline in the future or fight the financial system rules for short selling? There are plenty of stocks trending down.


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## galumay (26 November 2015)

It seems almost criminal that Commsec and other brokers can 'lend' your shares to shorters, is this really how it works? (I have never had the slightest interest in shorting or shorters so never researched how it works.)


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## skc (26 November 2015)

Rusty Reddog said:


> Don't you hate when you hold BHP shares which halve in value, and brokers like Commsec lend your shares to short sellers and charge up to 10% for the privilege.




If the broker pass you the stock lending charge (so you get paid 10%), would you do it?


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## skyQuake (26 November 2015)

skc said:


> If the broker pass you the stock lending charge (so you get paid 10%), would you do it?




Or a small US biotech and the lending rate is 130%?


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