What is the closing line of margin financing and securities lending?

Margin closing line is 130%. The liquidation line means that when the customer's maintenance guarantee ratio touches this line, if the collateral is not added or the position is reduced in time, the securities company will have the right to forcibly liquidate the customer's collateral. The early warning line of the liquidation line 140%, the early warning line is not too serious. When the customer's maintenance guarantee ratio touches this line, the securities company will remind the customer to pay close attention to the change of maintenance guarantee ratio.

Introduction of Margin Closing Line

In fact, the liquidation line of margin financing and securities lending often exists in investment and financial management. If this liquidation line is not set, then customers will not know whether the wealth management products they bought have gone up or down. If your liquidation line is high, it means that your wealth management products have been rising and earning income for you. If your liquidation line is very low, it means that this wealth management product has been falling and there is no need to buy it. You should stop in time at this time. Securities companies will also pay attention to the customer's liquidation line. When the liquidation line reaches the early warning level, they will inform the customer to pay attention to their wealth management products and maintain a good liquidation.

Functions of clearing banks

The full name of the liquidation line is "minimum maintenance guarantee ratio liquidation line". Maintenance guarantee ratio = (cash+total market value of securities in credit securities account)/(financing purchase amount+securities sold by short selling × current market price+total interest and expenses). General brokers allow this ratio to be up to 200%, that is, 500,000 yuan, and the maximum margin financing and securities lending is 1 10,000 yuan. When the liquidation line 130% means that the maintenance guarantee ratio is lower than 130%, investors need to add collateral, and the additional maintenance guarantee ratio shall not be lower than 150%. If you occupy 6.5438+0.3 million yuan, regardless of the sum of interest and expenses, the total market value of securities in the cash+credit securities account is only 6.5438+0.3 million yuan, then you will ask for additional collateral, otherwise you will be forced to close your position.

Therefore, when investing in financial management, we must pay attention to the liquidation line. When the liquidation line reaches the early warning, you must increase the collateral in time and press this liquidation line down, otherwise it will explode, and then your investment will become a bubble. When the investment becomes a bubble, the money you invested is useless.