In investment, the so-called leverage means that in the capital structure, a part of capital with fixed interest rate is used to improve the return on investment of common stock. Investors' own investment is small, but they may get high returns or big losses, which is very leveraged.
Specific process:
1. Understand financial management and leverage, and determine the cooperation intention;
Before handling leverage, users should first have a comprehensive understanding of the operation mode of leverage (using investor accounts) and trading restrictions (not operating st, *ST, etc.). ) and transaction risk (leverage ratio). After that, the user needs to select the leverage ratio and decide the leverage amount. The greater the leverage ratio, the better. Traders should choose the leverage ratio according to actual needs. The higher the leverage ratio, the greater the damage to your own funds when the market develops in an unfavorable direction.
2. Sign a futures fund cooperation agreement;
After receiving the cooperation agreement, please read the terms of the agreement carefully, especially the terms on account risk monitoring. It is very important for users to correctly understand the risk monitoring rules. If you have any questions about this part, please be sure to contact the customer service staff before signing the agreement.
3. Deposit risk margin;
After the account is checked correctly, the user pays the risk deposit according to the amount and account number agreed in the contract.
4. Officially start trading;
After the payment is confirmed, the account is officially delivered to the trader for trading.
The two sides of leveraged stock trading cooperation are called traders and investors. Traders refer to investors who need to expand their operating costs, and investors refer to individuals who provide capital for traders. The cooperation process is as follows:
First of all, traders and investors sign cooperation agreements, stipulating the principles of financial management plus leverage fees and risk control;
Secondly, the trader, as the party who bears the cooperation risk, pays the risk deposit (which is the trader's own fund) to the investor in order to obtain the cooperation account with 2-5 times of its own funds provided by the investor;
After that, traders will operate the account independently, and investors will monitor the risk of the account according to the contract to ensure the safety of their investment.