"Important" margin

Financing: In fact, the money to buy securities, such as stock prices rise, throw shares to return the money to the broker.
Bond: In fact, it is to borrow securities to sell shares, such as stock prices fall, and then buy shares, the stock back to the broker.

We know that the Chinese stock market can only do long, that is, you buy stocks can only wait for the gains profit, if the stock fall will not be profitable, and the coupon provides a short tool.

　 Examples Show

Investors feel that a share a has a clear space for the fall, but the hands do not have the shares, so to the broker borrowed 10,000 shares in 10 yuan to sell, 100,000 yuan, until the stock fell to 9 yuan after buying back 10,000 the shares back to the broker, bought only used 90,000, profit 10,000 yuan. This is a typical bond.

Another operation is hedging , for example:
investors on the day of 10 yuan to buy a share of 10,000 shares, the day rose to 11 yuan, investors want to sell at that point, but the Chinese stock market is a t+1 system, the day of the purchase of shares can not be sold. At this time you can melt coupons 10,000 shares in 11 yuan sold, and the hands of the 10,000 shares back to the broker, it is equivalent to do a t+0.

of course, there are many restrictions in the actual operation, such as "The Marked" is a kind, you can not be in any of the stock to be a coupon, but only to the securities designated by the stock Exchange, the stock group is called "marked."
Another limitation is that brokers may not have you want to melt the "standard", because the broker is not silly, you want to sell the stock, most of the brokers do not want to stay in the hands, so in consideration of the coupon before the securities to check whether there is still the stock.

　　borrowing, there will be interest, regardless of financing or coupons are in accordance with the relevant market value of the Bank interest settlement (roughly so), but many brokers have stipulated: the day borrowed the same day no interest, so conducive to do t+0.

Invest 1 million, you can finance 50 to 1 million, do 150 to 2 million of transactions.

"Important" margin