Is margin trading a credit transaction, or leverage?

Margin trading, also known as "credit trading" or "margin trading", referred to as "two financings", refers to the provision of collateral by investors to the first public bank with margin and securities lending business qualifications.

The act of borrowing funds or borrowing and selling includes both financing and securities lending from securities brokers to investors, as well as financing and securities lending from financial institutions to brokers.

The essence of margin trading is a leveraged trading method, the core of which is borrowed funds and borrowed**. Specifically, the two financial businesses can be divided into two categories:

1) Financing transactions.

Financing short buying reflects investors' expectations of stock prices**, commonly known as "buying long".

When an investor predicts that a **** will rise according to the analysis of fundamentals or technical indicators, his operation at this time must be to wait for the rise to make a profit while it is cheap, but it may be limited by the lack of liquidity in hand.

At this time, the investor can pay a certain amount of margin as collateral to the ** company with the qualifications of the two financial transactions, and entrust the **company ** to designate**, and if the ** rises as expected, it can be sold for profit.

The lower the margin ratio requirement of the exchange during the trading process, the greater the maximum financing size of the investor, that is, the greater the leverage effect; On the contrary, the higher the margin ratio requirement, the smaller the investor's maximum financing size, that is, the smaller the leverage effect.

Margin trading is a kind of credit trading, financing: borrowing funds for ** trading Securities lending: borrowing ** selling.

Margin trading is leveraged. For example, if you only have 100w, then you can only trade with 100w.

But after you open a margin account, 100w is deposited into the margin account as collateral, and then you get a margin of 100w (not actual money, just a quota), then you are equivalent to having 200w to trade, and the leverage is increased by 1 times, understand? If you have any questions, you can chat privately.

Pure hand hitting, looking.

From a global perspective, the margin trading system is a basic credit trading system.

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.

Hello, margin trading, also known as "credit trading" or "margin trading", refers to the act of investors providing collateral to ** companies with margin trading qualifications, borrowing funds (margin transactions) or borrowing ** and selling (securities lending transactions).

Xiao Zhang** account has 1 million assets (including cash and **), the margin ratio is 1:1, Xiao Zhang is very optimistic about **a, thinking that the stock will rise considerably in the next 6 months, **a is within the range of margin trading. However, Xiao Zhang's account has limited funds, so he used 1 million assets in his ** account as a pledge to borrow 1 million yuan from ** company and all ****a.

A few months later, **a has reached the expected increase, Xiao Zhang believes that the stock is overhyped by the market, **risky, so clear **a, repay the principal and interest of the loan, and at the same time use the account assets as a pledge, borrow 20,000 shares from ** company to sell, short the stock, half a month later**a**20%, Xiao Zhang bought back 20,000 shares at a lower ** and returned to the brokerage and paid the corresponding securities borrowing and lending fees.

There is a discount rate for the conversion of margin trading varieties into standard bonds, and credit transactions should be an evaluation criterion for the conversion rate.

In layman's terms, you can borrow money**!

Margin financing and securities lending business refers to the business activities of ** company lending funds to customers for them to sell or lending** for them to sell. ** Transactions arising from margin trading are referred to as margin transactions. Margin trading is also known as credit trading due to the lending relationship between the company and the customer, which can be divided into two categories: margin trading and securities lending transactions.

The customer borrows funds from the company, which is a financing transaction; The customer borrows from the company to sell, which is a securities lending transaction. In short, financing is to borrow money to buy, and securities lending is to borrow and sell, and after maturity, the borrowed funds or ** are returned according to the contract, and a certain interest fee is paid. In the margin trading business, investors need to pay a certain percentage of margin to the ** company in advance with their own assets such as cash or **, and deliver the funds obtained from the financing or securities lending and selling to the ** company as collateral.

Different from ordinary transactions, if investors fail to repay their funds on time and in full, the company has the right to liquidate their positions.

Hello, margin trading is a way to increase leverage, the regulation is a leverage multiple of 1:1, Zhongcheng speed dating is also a way to increase leverage, the leverage ratio can be 1-10 times with a relatively low threshold, and the business conditions for applying for margin trading and securities lending:

1. The account opening information is complete, the account is standardized and the account status is normal, and the capital account has been opened for more than 18 months; 2. The assets in the ordinary fund account shall not be less than 500,000 yuan on the trading day before the customer's application (**market value.

**Price calculation);

3. Have a strong risk tolerance;

4. The customer has a good reputation;

5. Comply with the company's suitability management regulations;

6. Other conditions stipulated by laws, regulations and the company.

In addition to the above conditions, corporate customers must also meet the following conditions to carry out margin financing and securities lending business:

7. Pass the annual inspection of the latest annual business administration department and tax management department;

8. Normal production and business activities, with the ability to continue to operate;

9. There are other situations that seriously affect the solvency of the enterprise.

Fundamentals of Margin Trading:

Margin trading exists in most of the national and regional markets, and is the basic function of mature markets. The market usually refers to "margin trading", which refers to the provision of financing and securities lending transactions by securities brokers to investors. To put it simply, financing is the purchase of ** Titan draft by a brokerage firm or other specialized credit institution for investors for financing, that is, "short buying".

Securities lending is a short-selling mechanism, where customers can borrow from ** company or other specialized credit institutions to sell, and then buy back ** in the market at a certain time in the future for Zheng Xiao to return, that is, "short selling".

There are two main models of margin trading around the world:

The first is the decentralized credit model represented by Europe, the United States and Hong Kong, China, which is provided to customers independently by financial institutions such as brokerages;

The second is the centralized credit model of Japan, South Korea and Taiwan, China, and the establishment of a special first-class financing company to provide customers with margin financing and securities lending. There are four types of margin financing and securities lending: financing from securities firms to investors, securities lending and securities lending from financial institutions to securities firms.

In the process of investment and financial management, margin financing and securities lending is a method used by Chang Hungerfeng, which has a certain relationship with the principle of leverage of Rotten Huihui, so financial managers should be clear about this point and then operate.

Margin trading can use leverage to expand the scale, but leverage is not limited to margin trading.

The relationship is complementary, and there is a corresponding function between the two, which can ensure the income of the economy from the core aspect, and can also understand the development of financial institutions.

1. Theoretical leverage for margin trading and securities lending.

According to the regulations of the Shanghai and Shenzhen Stock Exchanges, investors who conduct margin trading shall not be less than 50% of the margin ratio (note: the margin ratio refers to the ratio of the margin paid by the investor to the amount of margin and financing and securities lending transactions), so if the investor has 1 million yuan in cash as the margin, according to the 50% margin ratio, the amount of funds that can be raised from the ** company or the market value is 1 million 50% = 2 million yuan, that is, the investor can get 2 times the leverage ratio.

If the investor has a marginable amount of ** as margin, the amount of margin will need to be multiplied by a conversion rate when calculating the period margin amount. Due to the differences in margin and securities lending transactions, as well as the conversion rate of cash or ** that can be used as margin, the maximum leverage that can actually be achieved in margin trading will also vary.

2. Leverage in margin trading.

Due to the leveraged nature of margin trading, investors will magnify their risks when engaging in margin trading as if they were ordinary transactions. In addition, margin trading is subject to interest charges in addition to normal transaction fees.

After the investor finances ** a certain one, if it is ******, the investor will not only have to bear the investment loss, but also pay the financing interest.

After an investor sells a certain one, if the investor sells a certain one, the investor will not only bear the investment loss caused by the ******, but also pay the securities lending fee. The following is an example of a financing transaction to explain the actual leverage in a financing transaction:

1. Ordinary trading group promotion (regardless of transaction costs):

The investor uses 1 million yuan of 100,000 shares of China Merchants Bank and 1 million yuan of target funds. China Merchants Bank soared all the way to 20 yuan shares, and the investor sold them for 20 yuan shares; Profit of 1 million yuan, profit of 100%.

2. Theoretical leverage of margin trading (excluding transaction and financing costs):

Let's say the initial leverage is 2x. The investor uses 1 million yuan of 100,000 shares of China Merchants Bank with 10 yuan shares, and uses 1 million yuan; At the same time, 100,000 shares of China Merchants were raised with 10 yuan shares, and the old bank borrowed 1 million yuan from the brokerage. China Merchants Bank soared all the way to 20 yuan shares, and the investor sold 20 yuan shares, with 4 million yuan of proceeds, repaid 1 million yuan of financing liabilities, and the remaining 3 million yuan; Profit of 2 million yuan, profit of 200%.

3. Actual leverage of financing transactions:

Another feature of margin trading is that floating profits can be used for margin refinancing. That is to say, assuming that the initial leverage of margin trading is 2 times, then if the investor trades in the right direction, the financing is continuous, or the securities are sold continuously, then the credit line can be increased after the floating profit, and the floating profit can be used as margin to continue financing or securities lending. In this case, the leverage is much greater than 2 times.

For example, this year's **,** brother started from 20 yuan to 80 yuan.

Financing is to borrow money from the brokerage to buy**, and the financing is to borrow from the brokerage**, but you need to open margin financing and securities lending procedures at the brokerage where you are located. In order to make money on margin trading, you need good credit and money as collateral. More importantly, we should have the most basic knowledge and business experience.

The barrier to entry is low, but it's not that easy to make money.

Generally speaking, in the process of ****, it is profitable to raise ****, and after **** reaches the expected sell**, that is, to sell ** to repay the funds. On the contrary, kind of loss. If you judge that it will, then integrate a certain amount to meet your expectations, and then return the same amount, then you will make the difference.

Instead, you'll lose money. As for securities lending, securities lending is to borrow from the brokerage first to sell, financing is to borrow money to buy, and securities borrowing and lending is to borrow and sell first. For example, we see that we are going to fall, but we don't have it now.

What are we going to do? Let's borrow one from a brokerage and sell it first. Sure enough, it really fell into trouble.

Let's say it falls by 20 points, we will buy it back and return it to the broker. This process is the process of securities lending, so securities borrowing and lending is to borrow and sell first.

After finding out the difference between financing and financing, how to make money is very clear. As far as financing is concerned, you only need to find a ** that is trending upwards, and then financing is borrowing money to buy. This way, plus the leverage multiplied by the multiplier, you can make more money

For example, you only have 1,000 yuan to buy**, and the daily limit is to earn 100 yuan, but if you raise 1,000 yuan in the form of financing and become 2,000 yuan to buy**, you can also earn the daily limit, then you may earn 200 yuan, so how to make money financing is to choose the upward trend ** to operate. As for how to make money, that is, to choose the downward trend of **, then borrow ** to sell, and then **buy back**, so the way to make money is to choose the downward trend of **, or prepare ****, in short, it is bearish can be made margin.

But in addition to discussing how to make the most money, we also hope that you should also be aware of the risks, because if you buy the wrong one, you may lose one dollar, which is equal to a loss of two dollars, so there are advantages and disadvantages, and there is no perfectionOn the other hand, if it is a margin, it may also be wrong, such as looking bad for the spine ruler trend of New Oriental, and then borrowing Jingdong to sell, but what if the stock is ****? Suppose BOE ** is 10 times, then you lose 10 times. So to summarize in the end, the answer to this answer is a, you have to see the trend, the above sharing, I hope to help you with the operation.