Securities margin trading, also known as "securities credit trading" or margin trading, refers to the behavior that investors provide collateral to securities companies qualified for margin trading, borrow funds to buy securities (margin trading) or borrow securities and sell them (margin trading). Including securities companies financing and securities lending to investors and financial institutions financing and securities lending to securities companies. From a global perspective, the margin trading system is a basic credit trading system. On March 30th, 20 10, Shanghai Stock Exchange and Shenzhen Stock Exchange respectively announced that the margin trading system was officially opened on March 30th, 20 10, and began to accept the margin trading declarations of pilot members. Margin trading business was officially launched.

1, which is conducive to providing investors with diversified investment opportunities and risk avoidance means.

All along, China's securities market is a typical one-sided market, which can only be long and not short. Investors can only buy stocks first and then sell them at a high price if they want to get the spread income. Once there is a crisis in the market, there will often be a continuous "diving" and the stock price will fall out of control. Therefore, in the absence of securities credit trading system, investors have no means to avoid risks except temporarily withdrawing from the market in the bear market. The introduction of margin financing and securities lending allows investors to be both long and short, which not only gives them the opportunity to make profits from investment, but also allows them to sell margin financing and securities lending to avoid risks when encountering a bear market.

2. It is conducive to improving the capital utilization rate of investors.

Margin trading has a financial leverage effect, which enables investors to obtain a certain amount of funds or stocks beyond their own funds for trading, artificially expanding investors' trading ability, thus improving investors' capital utilization rate. For example, investors financing securities companies to buy securities are called "short selling". When investors predict that the price of securities will rise, they can borrow money from securities companies to buy securities by providing a certain proportion of guarantee money, and the investors will repay the principal and interest and a certain handling fee at maturity. When the price of securities rises in line with expectations and exceeds the interest and handling fees to be paid, investors may get much higher extra income than ordinary transactions. But this kind of income and risk are equal, that is, if the price of securities does not rise as expected by investors, but falls, investors will not only bear the investment losses caused by the decline of securities, but also bear the interest cost of financing, which will increase the overall losses of investors.

3. It is beneficial to increase the information reflecting the securities price.

The financing balance (the difference between the number of stocks bought and the number of securities repaid every day) and the securities lending balance (the difference between the number of stocks sold and the number of securities repaid every day) generated in credit transactions provide important indicators to measure the degree and direction of speculation: the larger the financing balance, the higher the stock market will rise; When the balance of securities lending is large, the stock will fall. The greater the amount of margin financing and securities lending, the greater the credibility of this trend. Therefore, after the formal launch of margin financing and securities lending, the open market statistics of margin financing and securities lending can provide new information for investors' investment analysis.