It is not illegal to borrow money for stock trading. Stock market lending, commonly known as "borrowing money for stock trading", refers to the mode that investors borrow capital from others or brokers to operate stocks, and individuals bear profits and losses, usually in the form of margin, and pay corresponding interest to others or brokers. At present, stock market lending is mainly divided into two types, one is brokerage financing, and the other is private borrowing money from securities accounts for stock trading.

Utility advantage

Compared with the financing of securities firms

1. There is no threshold limit. At present, the margin financing and securities lending business of securities firms has a high standard threshold, requiring investors to have a minimum capital limit of 5 thousand yuan, which excludes the majority of retail investors; Stock market lending can make it easy for retail investors to raise more funds for stock investment.

2. The leverage ratio is large. The effectiveness of margin financing and securities lending lies in the amplification of leverage ratio. At present, the financing margin ratio of securities firms is 6%, and the value of the margin account is only 6%, that is, the stock of 1 million yuan can only raise 1 million yuan for stock trading, and the leverage ratio is 2 times; However, the financing ratio of private stock market lending can reach 3~9 times, and the funds are all in a securities account, which is convenient for operation.

3. There is no limit on the underlying stock. At present, the scope of the underlying securities selected by securities firms is limited to the same as that of the constituent stocks of SSE 5 Index and Shenzhen Stock Exchange, and 9 stocks have been selected as the underlying stocks for margin financing and securities lending. Private stock market lending can be operated as long as it is not a stock without price limit, and there is a lot of room for stock operation.

4. The transaction rate is low. At present, the brokerage financing, securities account trading commission rate is fixed at 2.8 ‰; The transaction commission rate of private stock market lending is usually 1.5‰, and the financing amount may be reduced a lot. This transaction cost varies greatly. For short-term investors who are used to short-term trading, there is a difference of 1.3% in the cost of 1 unilateral transactions a month, so they will not care whether the financing interest is private 2% or brokerage .8%.

5. The borrowing time is flexible. At present, the financing of securities firms takes the shortest 3 months and the longest 6 months; Private stock market lending can be one month (few companies do this), and the longest can be one year or even longer.

6. The liquidation mechanism is flexible. At present, the closing line of brokerage financing is relatively high, which is 1.25 times of the loan amount, and the computer system automatically sells it; Non-governmental stock market lending can only be closed when it is 1.1 times of the loan amount. If the margin cannot be replenished, it can be negotiated to retain the matching funds according to 9 times of the remaining margin and transfer the rest of the funds out of the account

Extended information:

Operation process

Stock market lending requires shareholders to have a certain amount of margin, and the current method is generally triple financing, that is, the stock market financing is 3, yuan.

both borrowers and borrowers need to sign a loan agreement, which stipulates the loan term, interest rate and liquidation line. The securities account must be the securities account opened by the lender.

Generally, stock market loans are made on an annual or quarterly basis, and some powerful companies also try to borrow on a monthly or even daily basis (there are monthly and daily loans for standard investments).

At present, private stock market lending is still in the primary stage, and the areas with relatively mature financial development are not large. In cities such as Beijing, Shanghai and Shenzhen, most of them raise funds for private equity companies. Facing ordinary investors, Wuhan Zhengbiao Investment Company, which is owned by stock market celebrity Tan Zhengbiao (stock market hero and stock market thinker), has the best reputation and is guaranteed by celebrities' integrity.

Baidu Encyclopedia-How much is illegal to borrow and lend money for stock trading

It is illegal for users to use the loan funds for stock trading, but it is not illegal. It can only be said that the user's loan funds are used in an irregular way. Of course, unless the user defrauds the loan and the lending institution sues the user, then the criminal case will be involved at this time, that is to say, the user has illegal behavior. Most of the time, lending institutions will force users to pay off their debts in advance instead of suing them. Therefore, although it is not illegal to borrow money for stock trading, as long as it is monitored by lending institutions, there will be many subsequent negative effects. Is it illegal to borrow money for stock trading? Is it illegal to borrow 1, yuan for stock trading?

; ? Stock trading is a risky investor. In the stock market, there is a law of "seven losses, two draws and one profit". Only a few people can make money from the stock market, but some investors want to earn back with loans after losing money, but they don't think about it. So is it illegal to borrow money for stock trading? Is it illegal to borrow 1, yuan for stock trading? I have prepared relevant contents for your reference. According to the requirements of the regulatory authorities, banks have requirements on the use of loan funds. Applicants are not allowed to use loan funds in production, operation and investment fields that are explicitly prohibited. Borrowers need to provide proof or declaration of the use of funds, while stock trading, funds and futures belong to investment fields, so it is illegal to lend money for stock trading. Generally speaking, banks will strictly review and monitor the funds, and they will understand our purpose during the review. If we find that it is a loan of 1, yuan for stock trading, we will refuse the loan, regardless of the amount. However, if an investor borrows 1, yuan from a private lending company or 1, yuan from a securities company's margin financing authority for stock trading, it is generally not illegal, because the interest on the loan is relatively high. For an individual, the risk of lending to stock trading is great, which is generally not recommended. Because the risk of the stock market is very high, if you lose all your loans and stocks, and you are unable to repay them, it is very uneconomical to sell your house and car, and you will lose everything. Generally, you should consider your own situation and don't use the gambling mentality to stocks.