Funding refers to financing investment through obtaining obtaining cash at the lowest possible borrowing rates or maximizing the benefits of lending cash of other entities.
Assume for example that a trading institution has just settled the final the single purchase of shares at its custodian, resulting in positive securities position and negative cash positions in custodians accounts.
Security position and cash position
Lend share
Use shares as collateral
Use shares to clean-up another sale
Do nothing
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