What is the relationship between margin and leverage?

Margin trading is a form of financial leverage, and margin trading, also known as "credit trading" or margin trading, refers to the act of investors providing collateral to those who are qualified for margin trading, borrowing funds (margin transactions) or borrowing and selling (securities lending transactions). It includes the financing and securities lending of securities from securities firms to investors and the financing and securities lending from financial institutions to securities firms. From a global perspective, the margin trading system is a basic credit trading system.

Business process of margin financing and securities lending cooperation:

In the financing transaction, the investor pays a certain margin to the ** and integrates a certain amount of capital into the transaction behavior. The margin submitted by the investor to ** can be either cash or top-up. Then, after granting credit to investors, investors can be within the credit line from the list of financing targets announced by the exchange and the company.

If it is ******, it will be sold at a higher price, and the investor will only need to repay the arrears, and the investor will make a profit; If ******, the funds are incorporated **, which requires the investor to make up the funds to return, and the investor loses.

In the securities lending transaction, the investor pays a certain margin to **, which is used as collateral for its debt to **. Securities lending and borrowing provides investors with new ways to make profits and avoid risks. If the investor expects that **** is about to be**, he can borrow ** to sell, and then make a profit by repaying the coupon at a lower ****; Or by selling securities to hedge the volatility of the already held** to hedge.

Hello, margin trading is based on the position of ** or cash to borrow funds from ** company to buy ** or borrow ** to sell. Therefore, this margin account is also called a credit account.

Generally, it is possible to achieve double the leverage, so it is relatively normal.

The account opening process with a rich source of coupons with an interest rate of less than 6% can be sent to you, hope!

One of the functions of margin trading is leverage. There is also the preservation of value and the locking in of profits.

Thank you for your question.

What is the financing leverage of margin trading, and how much can I do for margin trading? The cooperative leverage of securities lending is generally 1 to 1, and the conditions for opening an account on margin financing and securities lending are relatively simple, mainly as follows:1

In line with the provisions of national laws and administrative regulations, individuals and institutions that are allowed to engage in ** transactions, individual customers must be at least 18 years old and have full civil capacity, and ordinary ** accounts are required to engage in ** transactions in the company for no less than 6 months, that is, the account must be opened for 6 months; 2.Having no less than 500,000 ** assets is the basic threshold, used as capital verification, 500,000 refers to 20 trading days, the average daily market value of **; Class assets include transaction settlement funds, bonds, asset management plans, etc.; 3.The assessment time is within 2 years, and the customer risk assessment questionnaire is required to be C4 or C5, with strong risk tolerance, and those with the lowest risk tolerance or C1 are not allowed to open it; 4.

Individuals or institutions in good standing that are not on the company's credit business "blacklist"; 5.not shareholders and affiliates of the Company; 6.In accordance with the provisions of the company's suitability management, there is no situation that is not suitable for margin financing and securities lending business.

The legal margin leverage ratio is 1:1, and an account opening requires 500,000 yuan.

In accordance with relevant laws and regulations, regulatory measures such as suspension of trading shall be taken for abnormal transactions.

For example, when the financing balance (or margin of securities borrowing and lending) of a single underlying ** reaches 25% of the marketable market value (or the circulating volume of the **listing), the exchange can suspend its financing** (or sell securities on the next trading day).

The information disclosure of margin trading refers to the act of the relevant parties participating in margin trading and securities lending to publish their relevant margin trading information to the market in accordance with laws, regulations, rules and market business rules.

Since the leverage mechanism of margin trading brings about the amplification effect of returns and risks, adequate, timely and accurate information disclosure is one of the most important and effective measures to organize and supervise margin trading and protect the interests of market participants.

The financing leverage for margin trading is generally in the form of 1 time. Margin trading, also known as "credit trading" or margin trading, refers to the act of investors providing collateral to a company qualified for margin trading business, borrowing funds (margin trading) or borrowing and selling (securities lending and borrowing transactions). Conditions for margin trading:

The conditions for opening margin trading include: 1. Engaged in ** trading for half a year; 2. The average daily ** assets in the last 20 trading days shall not be less than 500,000 yuan, and the risk assessment level within the year must be active and aggressive; 4. No bad credit record; 5. Non-shareholders and affiliates of the Company; 6. It is not prohibited by laws and regulations or is not suitable for margin financing and securities lending business.

The financing leverage of margin trading is generally 1 to 1, and many ** companies can't do it so high. As long as you need 500,000 assets, you can open margin trading, and you need to have an average daily asset of 500,000 in 20 trading days.

Hello, the prescribed financing leverage is 1 times, and you can apply for margin trading if the daily average reaches 500,000 in 20 trading days.

Hello, choose the brokerage's margin financing **The leverage will generally be about 1 times, and the user account can go to the brokerage to apply for margin financing and securities lending operations when the user's account reaches 500,000.

The conditions for opening margin financing and securities lending are: at least 18 years old and above, with full capacity for civil conduct; The individual has invested in the ** trading market for no less than half a year; The daily ** transaction capital is more than 500,000 yuan, etc.

Hello, generally speaking, the minimum threshold for margin trading is 20w, the account has been opened for 6 months, and the leverage is about 1:1.

Leverage refers to the use of leverage to amplify its own funds for investment, such as its own funds of 2 million, financing 2 million to the company, then the investor's principal is 4 million, China's first transaction leverage is mainly achieved through margin financing and securities lending.

Financing means that the investor borrows funds from the company and repays the principal and interest within the agreed period; Securities lending refers to the investor borrowing from the company to sell, and within the agreed period, the same quantity and variety will be returned to the brokerage and the corresponding fees will be paid.

Extended Materials. 1. Several common ways to increase leverage.

1. Relatives and friends borrow money to increase leverage.

When people need help, they tend to ask for help directly from those around them. If you can borrow the idle funds of relatives and friends to buy **, the financing cost of this method is the lowest, and you don't have to pay interest if you have a good relationship, but you should still send red envelopes when you make money. It's easy to say that you make money, but if you lose money, it's hard to explain.

Therefore, you must be cautious when increasing leverage, and you can use it when it is good. The risk of long-term leverage is still very large, after all, no one can rise or fall.

2. Online lending leverage.

First of all, the state stipulates that the bank's credit early promotion cannot be used to borrow funds, so if you want to use a credit card to withdraw cash, or what to borrow, micro loan, Jingdong gold bars and other online loans to the best friends should be cautious. First, this kind of square trillion leverage is illegal, and secondly, the interest cost is also very high, basically the annual interest rate is above 15%. The annual rate of return of many public offering managers may not be able to reach this level, and how many people in the ordinary ** dare to guarantee that they will earn more than 15% a year.

3. Bank loans are leveraged.

Bank small loans are generally credit loans, which can be without collateral or collateral, but large loans require a certain amount of asset credit. The cost of a small loan can refer to the interest rate of a commercial loan, and a large mortgage loan generally requires real estate, a car or other valuable asset as collateral, and the interest rate is slightly lower but the approval time is longer. This method of increasing leverage is relatively reliable, and you can obtain long-term and stable leveraged funds by paying a small amount of interest, and you do not need to ask relatives and friends for help.

4. **The company increases leverage.

It is to increase leverage through the margin financing and securities lending business of the brokerage, since the stock market crash in 2015, the supervision of this area is very strict, and generally only double the leverage, that is, how much you principal, the company can give you how much financing. However, small ** generally does not meet the threshold of opening margin trading authority, so this method can be ignored. Eligible **, cash can be pressed 1:

1 financing, with ** financing will generally be 5 7% off, in addition to the annual interest rate of 8%.

5. The tripartite capital allocation company increases leverage.

It is generally not recommended to use this method, one is that it is difficult to find the entire allocation company, and accidentally was pitted by the ** company, and the principal entered the private account to give you a simulated disk to play. Even if it is a regular capital allocation company, it is easy to liquidate the position with a high leverage of 5 to 10 times, and the handling fee is frighteningly high.

Hello, margin financing and securities lending leverage is generally a 1:1 ratio, and the funds require the user's account to be more than 500,000 funds, and you can go to the brokerage to apply for opening the operation with half a year of operation experience.

**How does margin work?

1. Open a credit ** and capital account first: Investors who want to participate in margin trading must first pass the credit investigation of the relevant pilot brokerage. For example:

Transaction settlement funds that are not included in the third-party depository, lack of risk-bearing capacity, and have a record of major default are not allowed to participate in margin financing and securities lending business.

2. The selling price of securities lending shall not be lower than the transaction price: for example, if there is no transaction on the same day, the price of securities borrowing and selling shall not be lower than the previous price.

3. Priority must be given to repaying the financing arrears when selling ** funds: After the investor has raised the funds, he can repay the funds through direct repayment or repayment by selling bonds.

**What is the general interest rate for margin trading?

There are 2 parts of the interest on margin financing and securities lending, one part is the interest on securities lending, and the second part is the financing interest at present, the regulations of the two financial securities regulatory commissions are basically the same, brokerages use one day to calculate one day's interest, ** the day and holidays do not calculate interest, but the day of sale needs to calculate interest. (Generally 6%)

The formula for calculating interest is: financing amount * interest rate 360, if it is calculated at 8%, it is 8% * n 360, a year is calculated according to 360 days, n represents the number of days, and the interest of 100,000 yuan in the brokerage can be calculated according to the formula for about yuan.

There is also a trading commission for margin trading**, which is generally the same as the trading commission for ordinary accounts.

Interest is deducted from your account every month, or when you terminate margin. In terms of financing, if there are funds in the account, the interest and principal of the financing will be repaid first, and the funds from the sale of ** will also be used to repay the financing arrears.

It will also give priority to repaying what is owed**. The interest on financing liabilities will be calculated on a natural day from T+1 onwards, and the end will not be counted.

The conditions for margin trading include: 1. Engaged in ** trading for half a year; 2. The average daily ** assets in the last 20 trading days shall not be less than 500,000 yuan, and the risk assessment level within the year must be active and aggressive; 4. No bad credit record; 5. Non-shareholders and related persons; 6. It is not prohibited by laws and regulations or is not suitable for margin financing and securities lending business.

The ratio of the margin paid by the investor when selling securities borrowing and lending to the transaction amount is calculated as follows: margin ratio = margin (selling **quantity of securities borrowing and selling**) 100%. The Shanghai and Shenzhen Stock Exchanges stipulate that the margin ratio for securities lending and borrowing shall not be less than 50%.

2. What are the skills of margin trading?

1.An excellent way to increase profitability is to use the financing effect.

For example, if you have 1 million yuan in your hand, you think that xx** is promising, and after you are optimistic, you can use the funds in your hand to ****, and then you can mortgage the ** in your hand to those brokers, and once you raise funds to start the stock, once the stock price rises, you can get an extra part of the income.

Take the example just now, assuming that xx** rises by 5%, the original income is only 50,000 yuan, but if it is through margin trading, you will earn more than these, of course, if the judgment is incorrect, then the corresponding loss will be more.

2.If you are a stable value investor, you are optimistic about the medium- and long-term performance of the market, and then inject funds into the brokerage.

You can mortgage the ** held by the value investment for a long time to the brokerage, that is, to integrate funds, it becomes easier to enter the market, there is no need to add funds, just pay part of the interest of the brokerage, and you can make the results more.

3.Using the securities borrowing and lending function,** we can also make a profit.

Senior sister will give you a simple example, for example, the current price of a certain stock is 20 yuan. After a multi-faceted analysis, this stock may be around $10 in the future. Then you can go to the ** company to lend securities, and then borrow 1,000 shares of the stock from the brokerage, and then you can use 20 yuan **in the market** to get 20,000 yuan, as long as the stock price is about 10 yuan to 10, then you can use 10 yuan per share ** for the stock again, **1,000 shares returned to the ** company, spending 10,000 yuan.

And then the manipulation in the middle, the difference is the so-called profit part. There will definitely be a part of the cost of securities lending. After this series of operations, if the stock price does not have ** in the future, but **, then it will face the problem of capital loss after the expiration of the contract, because it is necessary to buy back ** and return it to ** company, and eventually a loss will occur.