As the stock market gets hotter and hotter, many investors are prepared to add leverage to enter the market to do more. So how does leveraged stock trading work? Do we need to put money into each other's accounts to increase leverage? In this regard, please look down.

Do I need to put money into the other party's account to leverage stock trading?

At present, the vast majority of leveraged stock trading methods on the market are to put money into the other party's account, and only the financing of brokers is that the money is in our own account. Under normal circumstances, the formal leveraged stock trading process is through brokers. After we meet the qualifications, we can obtain financing qualifications by signing corresponding contracts with brokers. Informal leveraged stock trading is to find capital allocation. After receiving the money, the fund-raiser will give us a small account with our principal and fund-raising, which is the difference between the two.

In the financing account, all the funds and their allocated funds are in our own accounts, and brokers will only manage our risk control to a certain extent. However, the fund-raising account is different. There are generally two kinds of fund-raising accounts: the first is that the fund-raising party gives you a separate small account through technical means in a large account. The transaction of this small account is real, but the handling fee is very high. The second is that the fund-raiser conducts simulated trading, that is, he records all your transactions, which will not enter the real stock market, that is, all transactions are gambling transactions.

Therefore, if stocks are leveraged, it is best to operate through formal channels. Through capital allocation, it will not only face extremely high handling fees, but also face other risks that are easy to lose money.