Margin accounts are overdraft accounts and credit accounts. An account opened by an investor in a securities company. Through this account, investors can use stocks as collateral, borrow funds from securities companies and invest according to a certain proportion of the total market value of the assets in the account.

For funds that guarantee the performance of futures trading obligations, futures traders shall deposit the margin into the margin account of the futures company before trading. In the general securities market, in addition to cash transactions, customers must also pay all the value of their investment securities in cash.

There is also a credit transaction, in which customers can buy and sell securities with a value greater than the margin in the securities market by paying the margin as an investment commitment. This kind of transaction is called margin trading.

In order to ensure the security and fairness of the transaction, the deposits of both parties will be frozen when the information is released or the transaction is reached. Only when the deposit is paid, when the other party breaches the contract, the injured party will get compensation.

Margin account

Margin account, also known as overdraft account; Credit account. An account opened by an investor in a securities company. Through this account, investors can use stocks as collateral, borrow funds from securities companies and invest according to a certain proportion of the total market value of the assets in the account.

For funds that guarantee the performance of futures trading obligations, futures traders shall deposit the margin into the margin account of the futures company before trading. In the general securities market, in addition to cash transactions, customers must also pay all the value of their investment securities in cash. There is also a credit transaction, in which customers can buy and sell securities that exceed the margin value in the securities market only by paying a margin as an investment commitment. This kind of transaction is called margin trading.

In order to ensure the security and fairness of the transaction, the deposits of both parties will be frozen when the information is released or the transaction is reached. Only when the deposit is paid, when the other party breaches the contract, the injured party will get compensation.

According to different situations, the time of deposit freezing is the time of information release and transaction conclusion. See the schematic diagram of capital information flow under different trading modes for details.