Hello folks
I recently discovered “SLBM” i.e. stock lending and borrowing mechanism. Doesn’t seem to be a real-time efficient market, hence the questions below
I have some questions :
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Any brokers who provide this as a first class construct so I can automate it further ? If not, I’ll continue to create the file via script and hopefully automate the ticket creation step too
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What pricing should I expect for the trade ? At present, I price them as 0.5% of the Last Traded price (basically, if that were cash, then putting it for a year would have yielded 6% returns, a discount of 1.5% or so from FD rates because I still do own the stock
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Anyone with any experience with a successful trade like this before? Any other tips to maximize chances of the trade in terms of pricing / time of the day ?
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Any idea when these trades are made ? It seems that the orders are open till 5pm. Are these settled once a day or anytime during the day that there’s a match ?
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Zerodha doesn’t have an app or web interface to do this seamlessly, you need to “Open a ticket” in their support center. I wrote a script that takes my holdings as a csv file, then outputs the result in the format that Zerodha expects, so I can do this daily without spending a whole lot of time. I upload this file daily sometime during the day. Should I be preferring a specific time / price rule to maximize chances of the trade going through ?