In securities lending, the margin is the difference between the actual market value of a loaned asset and the value assigned to the asset for collateral purposes. The size of the margin reflects the perceived risk of a fall in the value of the collateral utilised to cover the loan exposure. The larger the perceived risk, the higher the collateral margin.
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With securities lending, as with other investment activities, your capital may be at risk.
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*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
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