(1) financing. Investors need to provide collateral with sufficient value to finance from banks or other financial institutions, so as to obtain sufficient funds for stock investment. (2) Securities lending. Securities lending is often confused with financing, but it is still different from financing. Although they all borrow from banks or other financial institutions, securities lending cannot directly borrow funds, but borrow securities products. Regardless of whether investors choose financing or securities lending, investors need to meet the restrictions and pay interest and fees to banks or other financial institutions. (3) allocation of funds. At present, the most common way to improve the leverage of stock trading is capital allocation. The investor finds a suitable fund-raising company and signs an agreement, and the fund-raising company provides funds to the investor according to the existing funds of the investor and the proportion agreed in the agreement. (4) borrowing. Although lending is not a leverage tool, investors can increase leverage by applying for lending. Only when investors borrow money, they need to provide sufficient collateral to banks or individuals and bear the corresponding loan interest. (5) Stock index futures. Stock index futures can buy and sell contracts only by paying margin, which is also a disguised leveraged transaction. At present, the margin required for stock index futures is below 20%, which is equivalent to 5 times leverage.

The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.