Broker loan rate

Broker loan rate

Related: Call money rate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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. It is also called the call money rate.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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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.
Do 1980s' timing strategies still work?: "definitely." (short-selling and market-neutral fund) (Pension Fund Management )

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