For investors, margin trading provides a margin trading system and short-selling mechanism similar to futures, but compared with futures, the difference between them lies in:
(1) Whether it is financing business or securities lending business, Shen Mu has not changed the trading settlement mechanism of securities, and his business behavior is completed off-site. Financing means that investors borrow money from securities companies to buy securities. Securities lending refers to investors borrowing shares from securities companies and selling them. In this sense, they are similar to "substitute" products in futures derivatives.
(2) The groups of margin financing and securities lending are limited, and not everyone can participate;
(3) The leverage ratio and the amount of securities lending are also greatly limited. According to the test plan, 5000 yuan can raise 10000 yuan, and the margin ratio converted into futures is 33%;
(4) margin financing and securities lending are secured by cash or securities assets, and securities assets can only be financed by 70% of the value;
(5) If the risk is too high, you may encounter forced liquidation; If 5000 yuan raises 10000 yuan and finally buys stocks with 15000 yuan, as long as the value is lower than 13000 yuan, it may be forced to close the position. The standard for converting into futures is that the risk reaches 1%.
(6) Only some brokers can carry out margin financing and securities lending business, which refers to innovative brokers with good credit strength.
In many foreign securities markets, there have been many "naked short selling" behaviors for a long time, that is, you can short without holding securities. In the early morning of July 8, 2009, the United States Federal Securities decided to pass a bill to permanently ban naked short selling of securities.
Seeing this, everyone should know that margin financing and securities lending are actually not short. Want to know more about investment knowledge, please pay attention to us!