Loaned Flat

Loaned Flat - Loaned flat is securities lent interest free between the brokers to cover customer's short sale positions. It is the practice of lending securities from one broker to another. This is to cover a customer's short sale with no interest charged by the lending broker. Selling securities, or commodities, futures and contracts not owned by the seller. The investor earns a profit when the market price of the security declines, and loses money when the purchase price is higher than the original selling price. To make a ?short sale?, the broker borrows stock and loans it to the investor when possible.