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Title: Re: Loan me your S.DICE until May 17 2013 Post by: ianbakewell on March 02, 2013, 07:12:49 PM The risk exists but is not unmanageable. Most of the risk is the difference between the BTC and $ price
I have funds on loan at a rather high interest rate, I should be able to buy back S.DICE cheaper than what I can sell it for now. So it actually makes more sense for me to borrow S.DICE to sell and use those funds to close out some funds recently received from private lenders. I will save money on the loan even if I need to rebuy S.DICE at its current price and could even potentially turn a nice profit when they dip. As for what happens to the dividends, etc. ... I work out the premium I will pay for borrowing the shares with each individual lender. Most lenders take into account the dividend income when calculating their requested premium :) The shares themselves will be paid back 1:1 on May 17 2013 |