How to understand margin financing and securities lending?

Margin = financing+margin; In essence, it is a financial leverage tool, which can amplify your income and your loss risk.

Financing is very simple, that is, part of your money or stocks, bonds, etc. It will be mortgaged to the brokerage firm, and the brokerage firm will lend you twice as much money, and you can control it freely.

Securities lending refers to borrowing securities, including stocks, ETFs and bonds, rather than money.

It should be noted that the proceeds from securities lending can only be used to buy resale securities and related interest, and may not be used for other purposes. Margin trading can also use qualified securities to offset the margin. On the agreed date, investors will buy back securities with the funds sold by short selling or return them with the existing securities in their accounts.

Margin trading not only has the advantage of amplifying income, but also needs to avoid corresponding risks.

The following is the rate comparison table of major brokers, hoping to help your margin financing and securities lending.