Is margin trading a rolling interest What does margin trading mean, is it good?

No. 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). 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. On March 30, 2010, the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively announced that they would officially open the margin trading system from March 31, 2010 and begin to accept the margin trading applications of pilot members. Margin trading business was officially launched.

Business process: In the financing transaction, the investor pays a certain margin to the company and integrates a certain amount of funds. The margin submitted by the investor to the **company can be cash or top-up.

After the company grants credit to the investor, the investor can be within the credit line in 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 into the purchase**, which requires the investor to make up the funds to return, the investor loses.

In the securities lending transaction, the investor pays a certain margin to the ** company, which is used as the collateral for its debts to the ** company. 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 rate; Or by selling securities to hedge the volatility of the already held** to hedge.

In fact, there are two concepts, namely financing and securities lending.

Financing: To put it simply, it is to borrow money from a brokerage to buy **. Usually 1x leverage. For example, if you have 100,000 yuan of funds, the brokerage will give you a credit limit of 100,000 yuan. Then, you can buy a total of 200,000 yuan of **.

Securities lending: The simple understanding is to borrow ** from the brokerage, but the borrowed ** must be sold immediately. This is actually a form of shorting.

The borrowed ** is to be repaid, if the stock price **, buy it back at a low price and make a profit. If the stock price is **, ** is bought back and returned to the brokerage, it will lose money.

Financing magnifies the investor's principal, because it is 1x leverage, and the money that can be operated is doubled.

Margin is not usury... It's just a mode that gives you amplified leverage, and the interest is generally settled on a monthly basis, not a rollover.

Margin is not managed by you, unless you say so. If you don't settle the interest in one month, he will count the part you didn't settle in the previous month as a liability.

5% of the financing accounts click on the avatar.

In simple interest terms, it is still 10,000.

Interest is settled daily on the basis of the outstanding financing principal, with simple interest.

The financing rate is initially set at 9%-10%. As of June 2020, two handling fees are charged for margin financing and securities lending: one is interest, GF** financing annual interest, annual interest on securities lending, divided by 365 if you borrow for one day, and so on. The second is the transaction commission.

Moreover, it must not be lower than the benchmark interest rate for loans of financial institutions for the same period stipulated by the People's Bank of China. China's first batch of shortlisted pilot lists for margin financing and securities lending, and various securities firms are successively announcing the cost of investment, margin and securities lending business.

Margin Tips:

1.Financing effects can be used to amplify returns. For example, if you have a capital of 500,000 yuan, you appreciate xx**, you can take out the funds in your hand first, and then you can mortgage the ** from the brokerage, and then go to finance the stock.

2.If your investment direction is stable and value-oriented, you think that the medium and long-term market outlook will perform well, and you will go to the brokerage to inject funds. If you want to integrate funds, you only need to mortgage the ** held by the value investment long-term to the brokerage, and there is no need to add additional funds to enter the market.

3.Exercising the securities lending function** can also make everyone profitable. **It is not necessarily a bad thing, the difference between the before and after operations, is equal to the profit part.

Naturally, there will be some fees for securities borrowing and lending. If the future stock price is not **, but **, then after the contract expires, there is no possibility of profit, but you need to come up with more funds to buy ** back to ** company, so even ** will also have a loss situation.

Extended information: 1. Financing interest Actual amount of funds used Number of days used Financing annual interest rate 360.

2. Fees for securities borrowing and lending, actual use**amount, number of days of use, annual rate for securities borrowing and lending: 360.

3. Actual use**amount=actual use**quantity, sell transaction**.

4. The actual number of days used is calculated according to the number of natural days, and the beginning is not counted as the end, and the less than one day is calculated as one day. That is, it will be charged from the actual use on T day, and will not be charged on the day of repayment; If T+0 uses the company's margin and securities lending quota during the transaction, the company will charge one day's interest or fees according to the quota used.

When it comes to margin trading, it is estimated that many people are either in the fog or just avoid it. The content of today's article is my experience for many years, especially the second point is very important!

1. What is margin trading?

When it comes to margin trading, we must first understand leverage. For example, if you have 10 yuan and want to buy an item with a price tag of 20 yuan, the 10 yuan we borrowed from someone else is leverage, and margin trading is a way to increase leverage. Financing is the company to lend money to shareholders to buy, as soon as the deadline is up, the principal will be returned immediately, and with interest, shareholders borrow ** to sell is an act of securities lending, and immediately after the expiration of the return of ** to pay the corresponding interest.

Margin trading can magnify anything infinitely, if it is a profitable trend, we can get several times the profit, and at the same time, the loss can also magnify the loss a lot. It can be seen that the risk of margin trading is really high, if the operation is not done properly, huge losses may occur, ordinary people will be more difficult to operate, this is a higher level of investment for investors, can hold the right trading opportunities, ordinary people still have a long way to go from this level, then this artifact can help, through big data technology analysis to select the most suitable time for trading, if you are interested, you can poke into the link below to see: AI intelligent identification of buying and selling opportunities, one minute to get started!

2. What are the skills of margin trading?

1.Financing effects can be used to amplify returns.

For example, the funds in your hands are 1 million yuan, and you support xx**, after deciding, you can use this capital ****, and then use the ** in your hand as a pledge, mortgage it to the brokerage, and then finance to buy the stock, if the stock price increases, you can get an additional part of the income.

Take the example just now, if the xx** increase is 5%, there is only 50,000 yuan of income, but the margin operation can change this status quo and make you earn more, of course, if we can't make the right judgment, the loss will be more.

2.If your investment direction is stable and valuable, and you feel that the medium and long-term market outlook is gratifying, you can inject funds into the brokerage.

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

For example, let's say the current price of a stock is $20. After depth, we will reach the point that there is a great possibility that it will be around ten yuan in the future. Therefore, you can go to the ** company to borrow securities, and then borrow 1,000 shares of the stock from the brokerage, and then you can sell it in the market at a price of 20 yuan, and obtain 20,000 yuan, in the case of the stock price ** to about 10, then you can buy 1,000 shares of the stock according to the ** per share of **, and return it to the ** company, and finally spend 10,000 yuan.

Then the middle of the before and after operation, the middle difference is the profit part. There will definitely be a part of the securities borrowing and lending fees. If after this operation, the future stock price is ** instead of **, you need to buy back ** with more money after the contract expires and return it to ** company, so there will be a loss situation.

Is margin trading positive or negative? As a common trading method in most of the world's most markets, margin trading is mainly reflected in four aspects: 1. Margin trading can integrate more information into the market, and can provide the market with trading activities in the opposite direction.

2. Margin trading can amplify the supply and demand of funds to a certain extent, increase the trading volume of the market, thereby activating the market and increasing the liquidity of the market. 3. Margin trading can provide investors with new trading methods, change the unilateral aspects of the market, and provide investors with a tool to avoid market risks. Fourth, margin financing and securities lending can broaden the company's business scope, to a certain extent, increase the company's own funds and its own application channels, after the implementation of circulation, can increase other funds and financing allocation methods, improve the efficiency of financial assets.

Generally, financing increases, there are funds to go long, and securities lending is the opposite, optimistic about holdings**.

In general, the launch of margin trading is good for **, because it can increase the trading volume of **, which is meaningful for stabilizing the stock index; But some people think that it is negative, because margin shorting can also make money, which will fuel the power of shorting.

For financing leverage, it is obviously a good thing for the market, but this is also a good thing on paper, the standard for opening the two financial institutions is the same as the standard for opening the science and technology innovation board, requiring the opening date of n trading days before the market value of more than 500,000 ** or cash, I didn't know how much the market can open the two financial institutions, ** has never been announced, but this time the science and technology innovation board announced a number.

The account for opening the Science and Technology Innovation Board is 3.4 million, I believe this is already a high-value number, as long as this condition is enough, the Science and Technology Innovation Board will basically be opened, because even if you don't participate in the speculation, you must at least open the authority to subscribe, assuming that the 3.4 million ** has increased the financing amount by 100,000 per person because of the reduction in interest rates, which is only 340 billion.

The turnover of the Shanghai and Shenzhen stock markets in one day is only, and the incremental funds brought by MSCI are almost hundreds of billions, which holds up the market, no, not to mention that it is impossible to increase the financing amount of 100,000 by 3.4 million.

In layman's terms, a financing transaction is when an investor borrows funds from a company with funds or a pledge to repay the principal and interest of the loan within the agreed period; Investors who buy from the company for financing are called "buying long". Securities lending transaction is that investors borrow funds from **company to sell, and within the agreed period, **the same quantity and variety** are returned to the brokerage firm and pay the corresponding securities lending fees; Investors sell securities to ** companies is called "short selling".

Hello, after the issuance, the impact of the stock price on the company lies in refinancing, the more it rises, the easier it is to refinance, and margin financing can be simply understood as the concept.

Rongzi Rongzi is a new profit model in the securities market. Rongzi is to borrow money to buy shares, ** sell the borrowed money to pay back, and make a little difference. That is, to be optimistic about the market outlook.

Do. Rolling is to borrow shares and sell them for money, and buy back the borrowed shares when the price is low to earn a little difference. That is, a bearish gamble on the market.

Short. Melt posture is good, melt volume, is bad.

Whether the financing of listed companies is good or bad.

Margin trading, also known as credit trading, is divided into margin trading and securities lending trading. In layman's terms, a financing transaction is an investor who borrows funds from a brokerage firm for trading with funds or ** as a pledge, and repays the loan principal and interest within the agreed period; Securities lending transaction is that investors borrow funds or ** as pledges, borrow ** from the brokerage firm to sell, and within the agreed period, **the same quantity and variety** will be returned to the brokerage and pay the corresponding securities lending fees. Generally speaking, the key to margin trading lies in the word "financing", and investors with "financing" must provide certain guarantees and pay certain fees, and return the borrowed funds within the agreed period.

In general, margin trading has given the originally fixed ** market an additional option to short, which is bearish!