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What does margin financing mean? Does it taste good?
Margin trading, also known as "securities credit trading" or margin trading, means 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).

Refinancing business refers to the provision of funds and securities by banks, funds and insurance companies, and securities companies, as intermediaries, provide these funds and securities to margin customers. Generally speaking, the opening of this business is a good thing for the banking industry. Because once the refinancing business is launched, it will provide great vitality for the capital market and be good for financial stocks for a long time.

Extended data

Operation mode of refinancing business

According to the preliminary design, a special company will be established to operate under the refinancing business system. The securities sources of refinancing business can include securities owned by securities companies, securities owned by securities companies and securities with security rights, securities held by funds, securities held by insurance institutional investors, securities held by major shareholders of listed companies and securities held by the National Social Security Fund.

Sources of funds can include funds owned by securities companies, funds owned by securities companies and obtained security rights, funds disposed of by insurance funds, funds disposed of by exchanges and Deng Zhong companies, directional issuance of bonds and funds borrowed through the money market.

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