Briefly explain the security deposit system for financing
The margin system is one of the key aspects of margin financing transactions
Taking $Tencent Holdings (00700.HK) $ as an example, you can check that the initial deposit rate for island Futubull is 30%, and the maintenance margin rate is 20%
Taking $Tencent Holdings (00700.HK) $ as an example, you can check that the initial deposit rate for island Futubull is 30%, and the maintenance margin rate is 20%
If you have HK$300,000 cash, you can buy up to 10 Tencent lots in cash
If I want financing to buy Tencent, how many lots can I buy at most? ——The answer is 33 hands
Since the initial margin rate is 30%, the corresponding leverage is 1/ 30% = 3.33 times. For 10 lots, you can buy up to 33 Tencent lots
To name three things in reverse:
$Shangtang-W (00020.HK) $ The initial margin rate is 60%, and the corresponding leverage is 1/ 60% = 1.67 times
$Country Garden (02007.HK) $ Initial margin rate is 70%, corresponding leverage of 1/ 70% = 1.42 times
$New Oriental Online (01797.HK) $ has an initial margin rate of 95%, corresponding leverage of 1/ 95% = 1.05 times
If I want financing to buy Tencent, how many lots can I buy at most? ——The answer is 33 hands
Since the initial margin rate is 30%, the corresponding leverage is 1/ 30% = 3.33 times. For 10 lots, you can buy up to 33 Tencent lots
To name three things in reverse:
$Shangtang-W (00020.HK) $ The initial margin rate is 60%, and the corresponding leverage is 1/ 60% = 1.67 times
$Country Garden (02007.HK) $ Initial margin rate is 70%, corresponding leverage of 1/ 70% = 1.42 times
$New Oriental Online (01797.HK) $ has an initial margin rate of 95%, corresponding leverage of 1/ 95% = 1.05 times
Keep two details in mind:
First, the initial margin rate is not the same as for individual stocks
Second, the margin ratio for individual stocks will be adjusted as it fluctuates
Therefore, even if you have a good sense of security and want to borrow money to buy stocks, you must leave behind the wheel, don't fight back, and avoid special situations where extreme fluctuations occur (they are prone to strong equilibrium if not handled well)
Also, since the stock price will fluctuate after you finance the purchase, there will be a maintenance margin rate to control the risk. The individual ratio means that if you want to continue to finance the purchased stocks (such as Tencent mentioned above), you need to guarantee the minimum margin ratio.
The formula is: maintenance margin = market value of account holdings × account asset maintenance margin rate. If interested, you can calculate it yourself
Finally, let me talk about the general principles. Although financing can make more money, there are no detailed risks. Unless you are very sure or highly skilled, it is not recommended to use financing easily. In particular, it is not recommended to use financing easily. In particular, you should not leverage the upside to buy leveraged products such as options or loans.
First, the initial margin rate is not the same as for individual stocks
Second, the margin ratio for individual stocks will be adjusted as it fluctuates
Therefore, even if you have a good sense of security and want to borrow money to buy stocks, you must leave behind the wheel, don't fight back, and avoid special situations where extreme fluctuations occur (they are prone to strong equilibrium if not handled well)
Also, since the stock price will fluctuate after you finance the purchase, there will be a maintenance margin rate to control the risk. The individual ratio means that if you want to continue to finance the purchased stocks (such as Tencent mentioned above), you need to guarantee the minimum margin ratio.
The formula is: maintenance margin = market value of account holdings × account asset maintenance margin rate. If interested, you can calculate it yourself
Finally, let me talk about the general principles. Although financing can make more money, there are no detailed risks. Unless you are very sure or highly skilled, it is not recommended to use financing easily. In particular, it is not recommended to use financing easily. In particular, you should not leverage the upside to buy leveraged products such as options or loans.
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