What are the similarities and differences between repo transactions and margin trading?

To put it simply, repurchase is divided into two parts: financing and securities lending, and ordinary investors can operate reverse repurchase and open a shareholder account to conduct transactions (some brokerages need to open the corresponding repurchase authority to trade). Reverse repurchase is declared according to 100 lots in Shanghai, and 10 and its integer multiples are declared in Shenzhen. The handling fee of reverse repurchase is very low, and the details can be queried on the exchange**.

Generally, the more active ones are 1 day and 7 days, and others can check the current ** through the trading software. Not all buyback varieties are active. Reverse repurchase is more suitable for investors who subscribe for new shares, usually have a large amount of idle funds, and have relatively high liquidity requirements.

It is generally recommended to pay attention to the reverse repo variety every Thursday or when the market interest rate changes. If the amount of funds is too small, the benefits are not so obvious. In addition, the ** displayed on the ** on the day in time refers to the annual income of the variety, which is different from **.

As long as the reverse repurchase operation is concluded, no matter how much the variety is ****, or the corresponding interest is calculated according to the transaction price at that time, this is the biggest difference from **, which needs to be paid attention to by ordinary investors.

At present, the industry is generally equipped with assets of more than 500,000 yuan, and the account opening transaction has been completed for 18 months. First of all, the subject matter of margin financing and securities lending is not only bonds, but also ** and the like, at present, the target of the major brokerages is part or all of the so many ** announced by the Shanghai Stock Exchange and the Shenzhen Stock Exchange, and then some of them are screened. Margin financing and securities lending are also divided into two parts: financing and securities lending, but there are more fees involved, and the first thing that needs to be opened is a credit account, unlike repurchase, which can be opened as an ordinary shareholder account.

In addition to the financing rate and securities lending rate, there are also collateral transfers, ordinary transaction fees, overdue penalty interest, etc. In addition, there is a risk of forced liquidation on margin trading. This business was launched in March last year if I remember correctly, and only some brokerages have the qualifications for margin trading, so compared to repurchase, the customer base that can be traded is different.

If you want to know more about margin trading business, you can first take a look at some basic documents issued by the regulatory authorities, and some business specifications of all securities companies are established on the basis of the rules of the regulatory authorities and the exchange on margin trading business. In addition, there are market rumors that there will be refinancing business launched later, if it is launched, the margin market will expand, after all, there are still relatively few margin financing and securities lending targets, especially in terms of securities lending, which are from the self-operated securities sources of different brokerages.

1. Repurchase is full margin, and margin trading only needs to submit a certain percentage of margin.

2. Most individual investors repurchase securities lending and borrowing to get interest, and margin financing and securities lending are to pay interest to brokers.

3. In terms of specific transactions, you can trade by repurchasing the original ** account with the opening authority, and margin trading is required to open a credit ** account to trade.

The answer is Hanshan Heng]:

In the declaration of bond repurchase transactions, the financing party shall declare according to "** negotiation and do", and the securities borrower shall declare according to "sell".

Margin financing is to provide funds and financing, you can borrow funds to buy, you can also borrow to sell, you need to provide as a guarantee, you also need to pay interest.

Repurchase generally refers to bond repurchase, especially treasury bond repurchase, and at the same time, it is common to reverse repo of treasury bonds, which is to lend money to the bank, and then repay the principal and interest regularly according to the number of days and the interest at the time of closing.

This is two completely different concepts:

1. Margin financing is to provide funds and financing, you can borrow funds to buy, you can also borrow to sell, of course, you need to provide as a guarantee, you also need to pay interest.

2. Repurchase: It generally refers to bond repurchase, especially treasury bond repurchase, and at the same time, it is common to reverse repo of treasury bonds, which means that you lend money to the bank, and then repay you the principal and interest on a regular basis according to the number of days you can get and the interest at the time of the transaction.