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Broker loan rate

    0.10 sec.
Broker loan rate
Related: Call money rate.

Broker loan rate
The interest rate at which banks make loans to brokers in order to finance margin loans for their clients. Because the broker wishes to make a profit on his/her own margin loans, he/she offers margin loans at a premium to the broker loan rate.


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He then sells the borrowed stock through the same broker,and the proceeds of the short sale earn interest at a broker loan rate, which is currently approximately 5 percent.
 
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