Special account for fund settlement used by investors for securities trading. As long as an investor has opened a capital account in a securities company or brokerage firm and deposited the funds needed by the stock exchange, it has the conditions for handling securities trading entrustment.
When buying and selling securities through a securities company, customers must pay all the price or securities to the fund account of the securities company before the liquidation date. Most individuals and large investors in China, such as insurance companies, enterprises or government pension funds, mutual funds, etc. Open a cash account.
The customer pays the price of securities according to the margin ratio specified in the account, and the balance is paid by the securities company, and the loan interest is converted according to the borrowing cost of the securities company. Under this account, customers can buy a lot of securities with little money.
Baidu Encyclopedia-Fund Account