There are two ways to leverage stocks, one is through the margin trading and securities lending business of securities firms, and the other is through private capital allocation business. The margin trading business of securities companies currently cannot achieve ten times leverage. Only capital allocation channels can provide ten times leverage funds.
How to achieve ten times leverage for stocks?
The capital allocation methods of capital allocation platforms mainly include daily capital allocation, monthly capital allocation and interest-free capital allocation. Generally speaking, most platforms only provide a maximum leverage of 8 times for monthly capital allocation, while only daily capital allocation and interest-free capital allocation provide a maximum leverage of 10 times.
To apply for leveraged trading, you first need to find the relevant financing company, confirm the cooperation intention with the financing company, sign the financing cooperation agreement, and agree on the 10 times leverage multiple, interest charging standards and account risk control rules.
Secondly, deposit money into the legal person account of the capital allocation company, including risk deposit and first installment interest. After the allocation company confirms the payment, it will issue the allocator a stock trading account and password, which includes allocation funds 10 times the margin, as well as the allocator's own margin. The allocator downloads the trading software of the allotment platform and can start leveraged trading after logging into the account.
Generally speaking, most investors who allocate funds use 3 to 5 times leverage, and rarely use 10 times leverage, because the risk of stock trading with 10 times leverage is really too high. For example, if you invest 10,000 yuan in stock trading and the stock price drops by 10%, you will lose 1,000 yuan;
If you allocate 10 times of capital and the stock price drops by 10%, you will lose 11,000 yuan. He lost all his money and had to compensate for the 1,000 yuan lost through the capital allocation channel. Funding trading is not like ordinary stock trading. If the stock price falls, you can still wait for it to rise back later. The position in the funding account is directly closed, and the principal is really gone after the loss.
How to use leverage allocation in stock trading? I don’t know what leverage platform you are using. According to personal understanding, none of the leverage platforms that have begun to take shape and become famous do not have this kind of operation. If there is a platform, it can If this mode of operation is provided, it is most likely a virtual disk. It is recommended not to use it because the risk factor is high. In addition, when using a leverage platform, you still need to find a more formal one, such as a legal and compliant matching platform like Zhenniu Exchange. The Chinese stock market has the rules of the Chinese stock market. Do not do some operations that are not within the scope of the rules, such as t+0. , how can you do an operation that is not available in A-shares? The only possibility I can think of is: it is not a real offer! It is also worth noting that stock allocation is different from personal account operations in that there is an allocation company in the allocation account In order to ensure that the capital of the capital allocation company does not suffer losses, generally, early warning lines and closing lines will be set up to control risks. Under a series of rules of the capital allocation game, capital allocation customers should master the skills of capital lending. First, the capital allocation company’s maximum leverage setting.
Generally speaking, the maximum ratio stipulated by formal capital allocation companies for stock capital allocation is 1:10, and the maximum ratio for futures capital allocation is 1:20. This is an increasingly mature allocation after a long period of practice. The capital market defaults to the most appropriate ratio. Secondly, the leverage selection for first-time capital allocation customers. When investors consult the capital allocation company about the capital allocation business, they will find that the business personnel of the capital allocation company will confirm whether it is the first time to do capital allocation. If it is the first time to allocate capital, the customer will suggest that the ratio be lowered. Whether it is stocks or futures, each investor has his own operating mode. While allocating funds to amplify funds, there will be certain liquidation requirements. There are limits on the operator's profit and loss floating range, which will directly affect other investors. Operation may disrupt the previous inherent operating rhythm. So