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0 pointsicebraining9y ago0 comments

its basically risk-free since the brokerage bears the counter-party risk.

Well, unless the brokerage itself goes under, no?

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3 comments · 1 top-level

durkie9y ago· 2 in thread

Yes, but I would think that's always a risk.

That's part of what you are getting paid for. You are getting paid for providing TSLA liquidity and risk of default on loans.

durkie9y ago

That's true. The only point I would add is that my loan is with the brokerage and they put up cash collateral. I'm not having to deal with individual short sellers and whatever risk profile they might have.

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