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the basic concept of margin trading margin trading is a form of credit trading in which investors borrow funds or securities from securities companies or financial institutions to conduct buying and selling activities. margin trading refers to borrowing funds to buy securities, while short selling refers to borrowing securities and then selling them immediately.

latest policy adjustments starting from july 22, 2024, the margin ratio for securities lending will be raised from the previous no less than 80% to 100%. in addition, the china securities regulatory commission approved china securities finance corporation to suspend the securities lending business, resulting in a further decline in the balance of securities lending.

costs of margin trading

financing interest: the interest that investors need to pay on their loans. the actual amount paid depends on the loan period and interest rate.

short-selling fees: the cost of borrowing securities, which also depends on the borrowing time and interest rate.

trading commissionsa commission paid to a broker, usually based on a percentage of the transaction amount.

stamp duty: taxes calculated as a certain percentage of the transaction amount.