Leveraging refers to the use of leverage to amplify the self-owned funds for investment. For example, if the self-owned funds are 2 million, and the securities company raises 2 million, then the investor's principal will be 4 million. Leveraging in China's stock trading is mainly achieved through margin financing and securities lending.

financing means that investors borrow money from securities companies to buy stocks and repay the principal and interest within the agreed time limit; Securities lending means that investors borrow shares from securities companies and sell them, and within the agreed time limit, they buy the same number and variety of securities and return them to brokers and pay the corresponding fees.

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1. Several common ways to leverage

1. Borrowing money from relatives and friends to leverage

When people need help, they often ask people around them for help directly. If you can borrow idle funds from relatives and friends to buy stocks, the financing cost of this method is the lowest, and you don't have to pay interest if you have a good relationship, but you should still give a red envelope if you make money. Everything is easy to say when you make money, but it is difficult to explain if you lose money. Therefore, you must be cautious when adding leverage, and you can use it when the market is good. The risk of long-term leveraged stock trading is still great. After all, no one can predict the rise and fall of the stock market.

2, peer-to-peer lending plus leverage

First of all, the state stipulates that the credit lending funds of banks cannot flow into the stock market, so friends who want to withdraw cash by credit card, or borrow money, micro-loans, JD.COM gold bars and other online loans to stocks should be cautious. On the one hand, it is illegal to add leverage in this way, and on the other hand, the interest cost is also very high, and basically the annual interest rate is above 15%. Many Public Offering of Fund managers fail to achieve this level of annual return, and how many ordinary retail investors can guarantee that they can earn more than 15% a year?

3. Bank loans plus leverage

Small bank loans are generally credit loans, and there is no need for mortgage or collateral, but large credit requires certain asset credit. The cost of small loans can refer to the interest rate of commercial loans. Large mortgage loans generally need real estate, cars or other valuable assets as collateral, and the interest rate is slightly lower but the approval time is longer. This way of adding leverage is relatively reliable. You can get long-term and stable leveraged funds by paying a small amount of interest, and you don't have to ask relatives and friends for help.

4. The leverage of securities companies

is to leverage through the margin financing and securities lending business of brokers. Since the stock market crash in 215, this piece of supervision is very strict, and generally only double the leverage, that is to say, the securities company can give you as much financing as your principal. However, small retail investors generally can't reach the threshold of opening margin financing and securities lending authority, so this method can be ignored. For qualified retail investors, cash can be used for financing at a ratio of 1:1. Generally, stock financing will be discounted by 5-7%, and an annual interest rate of 8% will be paid.

5. It is generally not recommended to leverage a tripartite fund-raising company

First, it is difficult to find the whole fund-raising company. Accidentally, it was cheated by a swindler company, and the principal went into a private account to give you a simulation disk to play with. Even a regular fund-raising company, with a high leverage of 5~1 times, can easily explode its position and the handling fee is too high.