Under what circumstances will margin trading break out?
Under what circumstances will margin trading break out? Securitiesmargintrading, also known as "securities credit transaction" or margin trading, refers to the behavior that investors provide collateral to securities companies qualified for margin trading, borrow funds to buy securities (margin trading) or borrow securities and sell them (margin trading). Financing to buy a stock (optimistic about the stock price rise), but when the stock price continues to fall to a certain extent, brokers will ask investors to continue to cover their positions or close their positions, and investors will suffer huge losses; When stocks are short-sold, it is actually counterproductive. When the stock price rises to a certain extent, brokers will ask investors to cover their positions or close their positions, and investors will also lose a lot. In both cases, the operation of borrowing funds or shorting stocks exceeds the margin ratio, which is called "short position".