Category: Money Tips Date: 2006-10-20
Experts suggest that if the bullish stock as financing transactions, put so Securities Lending Transactions
Margin trading business next month, is expected to carry out pilot projects in several brokerage firms. This is China's A share market for the first time to carry out margin trading business, investors how to take advantage of this new business acquisition yield?
Correctly judge the trend of target stocks
According to "securities margin trading business Pilot's management approach," the interpretation of margin trading business to brokerages that lend money for its customers to buy listed securities or listed securities lending for its sell and collect the collateral operations. The deal was to enlarge the size of investors to trade but also to enlarge the transaction risk. Therefore, in deciding whether to start margin trading transactions, we must determine if they are suitable for carrying out the transaction.
First look at whether they have the ability to control the operation of larger transactions, in the operation and whether a set of strict observance of the stop-loss discipline.
Also according to history to determine if they have a good ability to judge the stock trend. Dongguan Securities Research Center, Li Xiao pointed out that the margin trading to the market is that an important mechanism for the introduction of a fictitious, so the stock before the transaction must determine the future direction of target, if the call on to do financing transactions, if put on the do Securities Lending Transactions.
For example, if a stock price 5 yuan, investors expect the future rose to 7 yuan. In pay a certain margin (Margin can be offset by the securities), investors can obtain a certain percentage of the securities business department of finance, such as the period of 2 months, 100 thousand yuan financing. Availability of financial resources, investors bought 2000 shares of 5 yuan, when 2 months later if the stock price rose to 7 yuan, investors throw in the market shares of 2000, access to 140,000 yuan. Investors will be repaid as long as prior to the sales department borrowed 100,000 yuan can financing and a certain interest rate, investors can get 40,000 yuan gains.
The Securities Lending Transactions operate on the contrary, if a stock price 5 yuan, investors are expected to fall to 3 per future. In pay a certain margin, investors from the securities business department to obtain a certain percentage of stocks, such as the period of 2 months of 2000 shares. Subsequently in the market to sell for 5 yuan, recycling 100,000 yuan in cash, two months later after the stock fell to 3 yuan, and then bought 2,000 shares from the market. Prior to the sales department to repay borrowed 2000 shares of Securities Lending and a certain interest rate, the receive a 4 million as profit.
Have a good psychological and risk tolerance
In addition to operating skills outside the psychological ability and risk tolerance are also investors, to consider two important factors. Margin trading and futures were similar, namely, to pay a certain deposit and mortgage-backed securities, investors can control more than the original deposit of funds, but once operational errors, the loss is the same scaling. So, good mental capacity of investors to maintain a good attitude can make informed decisions, rather than blindly chase the sell into the loss is further increased.
The risk-bearing capacity is a rigid target, that is, whether the economic strength of the investors bear the loss of margin trading.
While the margin trading business for the entire market is a good policy, but for every one investors are not necessarily appropriate, if you do not have the capacity mentioned above, it is best when conditions are ripe and so further margin trading.
Experts believe that current market conditions from the point of view, the whole is in a bull market, the first to carry out financing business may be a wise choice. Reporter Jauhal Sen
â–?intimate Tips
Brokerage accounts must be in the pilot
Ability to conduct margin trading, but also to see if you open an account for securities companies can become a pilot margin trading. According to "Rules" provides the pilot securities companies from the 17 securities firms and innovation into production, the current China International Capital Corporation, CITIC Securities, Hai Tong Securities, Huatai Securities and Guotai Junan most likely to become the first pilot. If you would like to securities firms in the five accounts, but also half a year to begin margin trading, because according to the "measures" under Article XII, in the company less than six months engaged in securities transactions to customers, securities companies can not its financing, financial coupons.
