How Much Can You Borrow Against Your Shares?

The honest answer is that there is no flat figure that applies to every share. The advance — the loan-to-value, or LTV — is calibrated to the individual position rather than read off a published table. Two shareholders can hold lines of identical market value and be offered materially different ratios, because the collateral behaves differently. A liquid, widely held large-cap with a deep order book sits at the upper end of what is sensible; a thinly traded mid-cap, a tightly held founder stake, or a name prone to sharp swings sits lower. Rather than promise a number in the abstract, the firm reviews the holding first and then quotes an indicative ratio against it. That review looks at the share, the exchange, your standing as a holder and how you want the loan structured. If you want to see the inputs the firm weighs, the eligibility page sets out what makes a position financeable before any ratio is discussed.

Yes — concentration is a distinct factor from liquidity, and it works against very large lines. If your holding represents many days of the share’s normal trading volume, or a meaningful slice of its free float, realising it in a stressed market would itself move the price. That overhang is priced in, so a position that is large relative to the market typically supports a lower advance than a smaller line in the same stock. Your own standing also feeds in. A substantial shareholder, director or insider may sit within disclosure thresholds, lock-ups, or substantial-shareholding regimes that affect how, and how quickly, pledged shares could ever be dealt with; settlement cycles such as T+1 or T+2 shape the same question. None of this prevents borrowing — large, concentrated lines are routinely financed — but the terms reflect the practical reality of the position rather than a headline ratio.

In practice, the advance is arrived at by reviewing the specific position rather than applying a formula. The firm looks at the share and its market — float, traded volume and volatility — alongside the size of your line relative to that market, your standing as a holder, any disclosure or lock-up constraints, the currency you wish to borrow in and the recourse profile you prefer. Only then is an indicative ratio put forward, and indicative terms typically follow within one to two business days of a complete picture. Because every variable is specific to the holding and the jurisdiction, the right figure for you cannot sensibly be guessed in advance, and nothing here is an offer or advice — independent legal and tax advice should be taken on your own circumstances. You can see how principles translate into structure on the indicative terms page, which frames tenor, coverage and pricing in ranges rather than fixed promises.