How to calculate margin for margin financing and securities lending?
Generally speaking, 500,000 assets (including stocks) can be granted a quota of 300,000. The amount of margin financing and securities lending shall be determined by the securities company after comprehensive consideration of credit status, collateral value, market conditions and its own financial arrangements.
It should be noted that the credit line refers to the maximum amount of funds that can be absorbed by an investor's account, not the maximum amount of financing for each transaction. In practice, the ratio of margin financing and securities lending is still based on the convertible value of the collateral in the investor's account. The cash guarantee ratio is 1: 1, and the stock depends on the conversion rate.
After talking about the quota, let's talk about interest, so how to collect the interest on margin financing and securities lending?
Interest rate 1: the interest on margin financing and securities lending is charged at an annual rate of 8.35%, but the real-time interest rate is subject to the announcement of the securities company because the interest rate will be adjusted irregularly.
2 collection time: interest on margin financing and securities lending will be collected at the time of liquidation. For example, if you buy a stock by financing and hold it for 1 month (30 days), and then you start selling bonds to repay it, the system will automatically deduct the interest for these 30 days.
It should be noted that the longest holding time of margin financing and securities lending is 180 days. If you want to continue holding, you need to apply for an extension, and investors need to settle all interest before applying for an extension.