At present, margin trading has become an indispensable trading tool for us. leverage crazily enlarges and shrinks, the application of short selling mechanism in unilateral markets, etc., have made margin trading a favorite among many customers. During daily operations, some customers also hope to have more and more effective trading methods to help them achieve their profitable needs.
So, today we will bring you two tips on margin trading, which are very useful. I suggest you give it a try when doing transactions.
Tips 1: Financing to buy non-standard securities
As we all know, margin trading has restrictions on the underlying securities. When conducting double-financing transactions, stocks must be selected within the scope of the underlying securities. If you have non-standard securities you like, you can only turn them out, which is a pity. Now if you operate through the method I introduced below, you can also buy non-standard securities through financing.
Assume that you have 1 million assets in your account now ( has full stocks), and the total credit line applied for is also 1 million (excluding transaction fees, interest and other fees, as well as bid and offer price difference and conversion rate).
At this time, you are interested in a non-standard securities and want to raise funds to buy, but you are unwilling to sell the stocks you have. Through the following operations, you can obtain a financing purchase amount of 500,000 yuan:
Step 1: [Sold in margin] Sell the target securities worth 500,000 yuan, and the margin trading liabilities are 500,000 yuan;
Step 2: [Finance buying] Buy the same number of the same target securities with financing, and the margin trading liabilities are 500,000 yuan;
Step 3: [Sale bond return] Repay the margin trading liabilities in the form of cash-backed bond repayments. The account shows that the total liabilities are 500,000 yuan, and the margin trading funds are thawed.
Step 4: The thawed 500,000 yuan of funds you can buy non-standard securities in the same day by ordinary buying.
Calculation method:
T days, the customer's stock account guarantees assets of 1 million, and 500,000 yuan can be withdrawn from cash (selling funds for margin trading). At this time, the guarantee ratio = [1 million (guaranteed assets) + 500,000 (cash)]/500,000 (liability) = 300%. Since the guarantee ratio is greater than 300%, some funds can be withdrawn. At this time, the funds that the customer can transfer is 00,000 yuan, but the customer can use 500,000 yuan to buy non-standard securities.
Note that non-standard securities are also restricted and must be within the scope of the guaranteed target securities. So basically, 95% of securities except ST and GEM stocks with extremely poor performance are OK.
Tips 2: Cash out of margin financing and securities lending quota
In exchange with margin financing and securities lending customers, many client meetings said: How great it would be if the margin financing and securities lending quota could be cashed out, the annual interest rate of 8.6% is really not high. If you are also interested in trapping, you must master this little trick.
Or assume that your account has assets of 1 million (full stocks) and a total credit limit of 1 million (excluding transaction fees, interest and other fees, bid and offer price difference and conversion rate). To cash out, please follow the following steps:
Step 1: [Sold in margin] Sell the target securities worth 330,000 yuan, and the margin securities liability is 330,000 yuan;
Step 2: [Finance Buy] Financing to buy the same amount of the same target securities, with a financing liability of 330,000;
Step 3: [Sale bond return] Repay the margin trading liability by the target securities purchased in the form of cash bond repayment. The account shows that the total liability is 330,000 yuan, and the margin trading funds are 330,000 yuan unfreezing.
Step 4: 330,000 funds that are unfrozen by margin trading can transfer the funds the next day.
According to this operation, you can obtain 1/3 of the withdrawable funds of the original account assets.
Calculation method:
T+day, the customer's stock account guaranteed assets of 1 million yuan, and 330,000 yuan can be withdrawn from cash (sold funds for margin trading). At this time, the guarantee ratio = [1 million (guaranteed assets) + 330,000 yuan (cash)]/330,000 yuan (liability) = 400%. Since the guarantee ratio is greater than 300%, some funds can be withdrawn, the funds that the customer can transfer out at this time are 330,000 yuan.
After reading the above two tips, are you very moved? But don’t worry, no matter how good the tool is, it must have the applicable objects and the principles of its working. We adhere to a serious and responsible attitude to explain the following relevant principles and applicable circumstances to facilitate your understanding and operation:
Operation principle:
1. Credit account maintenance guarantee ratio of more than 300% of some funds or stocks can be withdrawn. Maintain the guarantee ratio = total assets/liabilities
2. On T day, sell margin trading → buy financing → return the coupons in cash, and release the margin trading funds;
T+1 day, more than 300% of the funds or stocks can be transferred out
suitable situations:
1. Customers have long-term holdings and are trapped, and they are short of money to replenish their positions, but holdings stocks are not the target securities stock;
2. Customers have full positions, and short of money needs temporary turnover.
Notes:
It is best to choose the Shanghai Stock Exchange ETF for margin trading and financing purchase. There are four reasons:
First, Shanghai Stock Exchange ETF can return the coupons on the same day;
Second, ETF fluctuates less, avoiding price difference losses during trading;
Third, ETF inventory can be sold in large amounts, large trading volume, and easy to trade;
Fourth, ETF transactions do not charge stamp duty, and the price reduction cost is required.
In fact, if we can make good use of margin financing and securities lending trading, it can bring a lot of benefits to our investors. Next time we will introduce more uses of margin financing and securities lending.
