Many people want to find out whether normal margin financing and securities lending can explode, and they need to consult relevant information to solve it. According to many years of learning experience, it will make you get twice the result with half the effort to find out whether normal margin trading can explode positions. Let's share the relevant experience of normal margin financing and securities lending for your reference.
Can normal margin financing and securities lending break out?
_ _ _ can _ _. Margin trading has high risks, and investors should fully consider their own risk tolerance when engaging in margin trading. If the risk tolerance of investors is low, there may be the risk of short positions due to margin trading.
What business does margin financing and securities lending belong to?
Margin trading belongs to the securities trading business of brokers.
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).
Tips: The above information is for reference only, please refer to the official information.
What are the conditions for short positions in margin financing and securities lending?
The conditions for margin trading to trigger "liquidation" are:
1. The price of securities provided by securities lenders fell.
2. The guarantee ratio of the financing fund or securities credit account of the financing party is less than _ _ _ _14 _ _.
3. During the period of securities lending, the securities lender cannot fully repay the securities lending.
4. The guarantee ratio of the financing party's credit account is less than _ _120% _ _.
When the securities lender fails to return the securities or pay off the debts within the agreed time limit, it may force the liquidation. When using margin trading, financiers need to pay attention to market risks. If the debt cannot be repaid at maturity or the assets are insufficient to pay off the debt, it may be forced to close the position.
Financing buys a lot but doesn't go up.
The reason why I bought a lot of financing but didn't go up may be:
1. Main shipment: The main operation of the stock, through financing transactions to achieve shipment. When the main force completes the shipment, even if it buys in large quantities, the stock price will not necessarily rise.
2. The amount of financing is too large: if the amount of financing transactions in the market is too large and the underlying stock has limited capacity to accommodate financing, it may have an impact on the underlying stock after buying in large quantities, thus hindering the stock price from rising.
3. Good news does not rise: even if there is big money to buy, but there is no obvious good news in the market, then the stock price may not rise.
4. Too much capital: Even if both parties reach an agreement, it may have an impact on the stock price.
5. Uneven chip distribution: The chip distribution of financiers may not be concentrated in the hands of large funds, but in the hands of retail investors in the market. When retail investors are willing to continue to hold the stock, even if there are large funds to buy it, the stock price may not necessarily rise.
6. Bad news: Even if there is big money to buy, if there is bad news in the market, the stock price may fall.
It should be noted that there are various reasons for the large amount of financing purchases but not rising, which need to be analyzed in detail in combination with the actual situation.
What does the stock quilt mean?
"Stock quilt cover" is a technical term in stock trading, which means "being led by the nose by stocks, buying when they fall and selling when they rise". Simply put, it means that you don't make money after buying it, but you are trapped. It may be that you bought a hot stock, or the company's own performance has fallen sharply.
This is the end of the introduction of the article.