Short borrowing refers to an investment strategy in which investors borrow from the company, then sell it in the market, and wait until the stock price is back to the company, so as to earn the difference. Short-selling securities can obtain returns when ***, and can also hedge the risk of holding **, but there are also higher risks and costs.
Open a margin account and sign the relevant agreement;
Have sufficient collateral, including cash, ** or **, etc., as margin for securities lending;
Select the underlying ** that can be borrowed and borrowed, usually with high liquidity and market capitalization**;;
Check whether the company has the amount of securities available for borrowing, as well as the interest rate and maturity of the securities borrowing;
Select the operation of selling securities borrowing and lending on the trading software, enter the quantity and **, and submit the order;
Within the coupon repayment period, **the same amount**, select the operation of coupon repayment**, and return **company**.
The ** of the short selling of securities borrowing and lending must be higher than the ** price of the previous trading day, and cannot be lower than the **;
Short-selling** is subject to the supervision of the exchange, and if there are signs of market manipulation or abnormal trading, the exchange may take measures to restrict or suspend securities borrowing and lending;
Securities borrowing and lending short ** need to pay a certain amount of interest to the ** company, the interest is calculated according to the actual number of days occupied, the interest rate will be different for each brokerage, choose the low, different ** companies may have different preferential policies;
If the guarantee ratio is less than 120%, the company will issue a notice of additional guarantee, if it is less than 110%, the company will force the liquidation, that is, sell the ** of securities lending, causing losses to investors;
If it is not returned by maturity, you can apply to the ** company for an extension, or deal with it in the agreed way, investors need to pay attention to the details of the contract.