Margin trading, also known as securities credit trading. It refers to the act of investors submitting collateral to securities companies with qualifications for margin trading and short selling, borrowing funds to buy listed securities (margin trading), or borrowing listed securities and selling (margin trading).

Business characteristics

1. Financing "long" when rising

Financing transactions increase the trading chips of customers. When a customer is bullish on a certain security and predicts that its price will rise, if they do not have enough cash on hand, they can borrow funds from a securities company to buy a bullish security. Buy through financing at low levels and sell securities for repayment at high levels to obtain more returns. Financing transactions help customers accelerate the appreciation of their account assets when the market rises.

2. Short selling securities during a decline

Short selling trading has changed the "unilateral market" situation in the securities market, which used to be limited to long selling and not short selling. When a customer is bearish on a security and predicts that the price of the security will fall, even if they do not hold a position in the security, they can borrow the security from the securities company and sell the bearish security. Perform margin trading and selling at high positions, and buying and returning securities at low positions to obtain price difference returns. Short selling transactions help customers maintain and increase the value of their account assets during market downturns.

3. Leverage advantage

Compared with ordinary securities trading models, customers can increase the funds and securities available for trading by financing and securities lending from securities companies, which has a certain financial leverage effect. Under the same funding conditions, customers can obtain more profits through the leverage effect of margin trading and securities lending.

Advantages of the company's margin trading and securities lending business

1. Convenient procedures

When investors meet the basic conditions for participating in the company's margin trading and securities lending business, they only need to provide basic credit data and sign a contract with the company to obtain business qualifications.

2. High approval efficiency

After investors apply, they can generally obtain credit within two working days and engage in margin trading and securities lending.

3. The company has sufficient funds

The company has sufficient funds and can meet the financing and trading needs of investors at any time.

4. Transaction security and reliability

Margin trading and securities lending transactions are conducted through exchanges and China Securities Depository and Clearing Corporation, with strong security guarantees for trading; The collateral of investors is stored in their credit securities accounts, and all transactions are decided by the investors themselves.

Business application process

1. Investors provide ID documents, credit materials, and application documents;

2. Provide detailed explanations to investors on the rules, contract terms, and business risks of margin trading and securities lending business;

3. The business department verifies identity and conducts credit information review.