The analysis of the difference between margin financing and stock futures shows that stock futures and margin financing and securities lending are similar in function. For example, an investor can buy a stock with his own funds in the expectation that its share price will rise in the future, and he can buy the stock through financing or stock futures targeting the stock. If the stock price rises as expected, investors can profit from it; If the stock price falls, investors will suffer losses if they use any trading method.

Similarly, if the investor's expected share price falls, he can sell his securities, sell them by short selling, or sell stock futures with the stock as the target, and the profit and loss are the same. It can be seen that free loan trading, margin financing and stock futures can be replaced in function, but the difference is that margin trading mode is adopted in margin financing and stock futures, and the leverage effect magnifies the corresponding benefits and risks.

To sum up, margin financing and stock futures have the following similarities in function: First, margin financing and stock futures are both implemented, which magnifies the benefits and risks; Second, it is mainly used for short-term speculative transactions; Third, there is generally a time limit; Fourth, everyone benefits or suffers from the rise or fall of stock prices.

Margin trading and stock futures also have the following differences:

First, the margin ratio of stock futures is lower than that of margin financing and securities lending, the former is about 20% and the latter is 50%, and the corresponding risk magnification is 5 times and 2 times.

Second, stock futures have a cost advantage. Stock futures do not need financing, and there is no financing cost, and the transaction cost is lower than the stock spot;

Third, stock futures are standard contracts created by exchanges. Every day, members and customers take the settlement company as their counterparty for settlement. Margin trading is a trading behavior based on borrowing between members and customers in the stock spot market, and the borrowing period is arbitrary.

Fourth, the number of stock futures contracts is theoretically infinite, which has nothing to do with the underlying stocks and does not affect the number of tradable underlying stocks, while the securities corresponding to margin financing and securities lending are tradable stocks-it is impossible to exceed the number of tradable stocks. The supply of futures can be regarded as unlimited, which can reduce the fear of shorting, while shorting in the spot market is worried about being squeezed (it is necessary to return the lent shares and find a substitute stock).

In a word, securities margin trading is a basic trading system and internal stability mechanism of the securities market. The introduction of margin financing and securities lending is an important measure for the construction of China's securities market system, while stock futures are only derivatives of stocks in a narrow sense, and the two complement each other. No matter from the historical evolution or functional differences of overseas markets, China should carry out stock futures trading on the premise of introducing the margin trading system.

Seeing this, everyone should know the difference between margin financing and stock futures. Want to know more about investment knowledge, please pay attention to us!