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Will I be in debt if my stock investment fails?

Failed stock investment may lead to liabilities, such as borrowing money to operate high-risk margin trading

1. Margin trading refers to investors who have membership of the Exchange. Securities companies provide collateral and borrow funds to buy securities listed on the exchange or borrow and sell securities listed on the exchange.

2. Preparation for risk control. Because margin trading has a time limit, the transaction cannot exceed 6 months. If it exceeds 6 months, it will result in forced liquidation. If investors make wrong judgments about the trading direction and suffer excessive asset losses due to excessive decline, securities companies may close their positions when a certain amount is reached. This is something investors need to pay attention to.

3. Margin margin trading is a leveraged transaction, and the returns and risks are multiplied. If you make money quickly, you will lose money quickly. If the investment fails and you borrow other people's money, you will be in debt.

Tip: Arrange funds reasonably and invest rationally. It is not recommended to borrow money to speculate in stocks.

The stock market is risky, so be cautious when investing!