IB's Stock Yield Enhancement Program

[True 17]

I just signed up for an account with IB and one of the options is called a Stock Yield Enhancement Program where they lend your shares out that you're long in for short sales and pay you an interest rate for it.  Anybody sign up for this? Curious if I should do it or not.

[svb333031 0]

Hello True,

Don't think there is any harm in signing up for this. As a day trader, one needs to be flat at the end of the day. It is for those folks who retain stock in their portfolio that this applies. If you are swing trader, then your shares of a certain security could be lent for others to short. However, IB does state that IF you can close your positions at anytime. Sounds okay to me.