The funds held by investors are equivalent to their own collateral, and they must have considerable funds to participate in margin trading. The minimum capital limit varies from broker to broker.

Second, the investment period.

Investors need to participate in stock trading for at least six months.

Third, affiliated brokers.

Only brokers with relevant qualifications can carry out margin financing and securities lending business. Of course, more and more brokers will get margin financing and securities lending. If investors need to open an account, they can directly consult their own brokers.

Fourth, operational objectives.

Only stocks that meet certain conditions can become the target of margin financing and securities lending. If investors open this business, they will see these qualified stocks in the stock trading software.

Investment advice:

Margin trading, some similar to futures trading, but the risk coefficient is smaller than futures. It not only has the function of amplifying investment returns and risks, but also provides investors with the function of shorting the stock market.

Extended data:

First, fully learn from the international experience of market interconnection and adopt more mature order routing technology and cross-border settlement arrangements to provide investors with convenient and efficient securities trading services;

Second, two-way opening, mainland investors can buy and sell stocks listed on the Stock Exchange within the prescribed scope through the Hong Kong Stock Connect, while Hong Kong investors can also buy and sell stocks listed on the Shanghai Stock Connect within the prescribed scope;

The third is to adopt two-way RMB settlement for investors, that is, mainland investors buy and sell Hong Kong Stock Connect stocks quoted in Hong Kong dollars and settle in RMB, while Hong Kong investors buy and sell Shanghai Stock Connect stocks and quote and trade in RMB;

Fourth, the quota control was implemented in the initial stage of the pilot project, that is, mainland investors have a total amount and a daily quota limit for buying Hong Kong Stock Connect stocks, while Hong Kong investors have a total amount and a daily quota limit for buying Shanghai Stock Connect stocks;

Fifth, the stocks of the other market that investors in the two places can buy and sell through Shanghai-Hong Kong Stock Connect are limited within the prescribed scope.

Baidu encyclopedia-margin financing and securities lending