Current location - Trademark Inquiry Complete Network - Futures platform - What do you mean by insufficient balance between the two companies?
What do you mean by insufficient balance between the two companies?
Margin trading refers to the margin trading services provided by futures companies for investors. That is, investors mortgage securities to futures companies and borrow funds to buy other securities, thus achieving the purpose of leveraged trading. Financing balance refers to the funds borrowed by investors in financing business. The higher the balance, the more leveraged trading funds investors have.

When the investor's balance is insufficient, it means that the borrowed funds cannot match the value of the collateral. In this case, investors can no longer continue to conduct leveraged transactions, and must replenish collateral or repay financing loans to maintain the normal operation of the account. If the investor fails to replenish the collateral or repay the loan in time, the futures company may take compulsory measures such as additional margin and liquidation to ensure the safety of the futures company.

The insufficient balance between the two companies is likely to affect investors' leveraged trading plans. This will indirectly affect investors' income and risk control. In extreme cases, if investors can't replenish collateral or repay loans in time, they may explode their positions and cause serious trading losses. In addition, comprehensive financial services are an important part of financial markets. If more investors have insufficient balance, such a problem may have a potential impact on the stability of the whole market. Therefore, investors should make rational use of the two financing businesses to avoid insufficient balance.