November 8th, 2005, 8:28 pm
1) I think spread around 10-50 bps would be typical. If you are a hedge fund, the deal that you get from a primary broker depends on the volume that you trade, your credit rating etc.2) If you trade using margin account, which is typically the case, your securities can be lended by your primary broker without even informing you. If you suddenly decide to close your long position which was lended to other client of your primary broker and primary borker can not locate the same shares somewhere else, this other poor guy will be "short squeezed"Does it answer your question?
Last edited by
Errrb on November 7th, 2005, 11:00 pm, edited 1 time in total.