The stock reputation trade

The stock reputation trade, calling security deposit trade again or the mat head trade, also is usually the buy on margin say, this is to be the investor after thinking ° to be good the city but funds are again not ample, to borrow buy of the stock for the guarantee toward the broker into the certain amount of money to purchase the stock, or after see empty city but have no stock, take certain funds of the quantity as to guarantee toward the broker behavior of the congenial stock but the selling stock.

The reputation bargain of the stock can is divided into a bargain and the security deposit short seller bargains.

When the investor anticipate the stock condition of the market will soar, he think to be immediately the buying sells with the higher price at the fit opportune moment and then, but his hand in the cash is not enough, hence trade the way through the stock reputation, preparing to hand over one part of payments according to the provision comparison, the difference in amount part of the rest is tried the mat by the broker to pay, this is the security deposit a bargain. In security deposit many head trade, the investor can be worth the bigger stock with the few cash buying. After the stock condition of the market soar, the investor can throw stock, will borrow funds the capital and interest liquidation and brokers again, thus acquire the more earnings.

In the reputation of the stock trade, do many head of security deposit trade of premise is the investor estimate condition of the market to soar, if stock after city not the elephant investor estimate of so optimistic,, the loss of the investor also double.

Think such as the some investor that the price of a certain stock will soar, its market price is each 100 dollars, but only have 10,000 dollar funds in the its hand, can buy one hand only. He wants to buy in great quantities then the on the rise hour throws to obtain the high sum excess fare, decide to do many heads of security deposit to trade, hence that investor and coupon the company signs the reputation bargain agreement, the dictum security deposit comparison is 25%.Thus, that investor buys with each 100 dollars price then 4 hands of stock. Soon after, the stock price soars each 120 dollars, that investor throws a stock and clears up accounts with broker then, after deduct various expenses, that investor the each hand stock earns the excess fare 1700 dollars,4 hand stock total amounts earning profits 6800 dollars. If don't adopt the reputation bargain method, that investor uses own funds also can buy one hand stock only, the profits that can earn also 1700 diverse.

If the estimate mistake of the investor, it loses to want ratio does not do the reputation bargain greatly and have to have another. As above in the example, after investor buy the stock the price does not rise the on the contrary nasty play slump, in order not to the further slump of stock price result in more great damage, that investor decide to throw stock with each 80 dollars price, thus each the hand stock result in loss in business 2300 dollars. If the investor uses only from have the funds to buy the stock, it loss in business also for 2300 dollars, but because of adopting the reputation bargain, the investor's total amount will lose 9200 dollars, almost will all compensated to go in own capitals.

The same, be the investor expectation stock price and will descend, he wants to get the advantage from the slump of the stock, but its hand in the stock even all has no 1:00 not much, in this kind of case, he also can ask for help from the reputation bargain method, handing over the 纳 toward the broker certain security deposit of comparison, be paid the stock by the broker's mat and then, sell stock at the same time, this is the security deposit short seller to trade. After a period of time stock price decline, the investor return with the stock that the market price buys the equal quantity again with the broker, after deducting the interest of the commission and advanced money, the rest sum is an investor to sell to buy the price difference profits.

In the security deposit short seller trade, its prior condition is the investor estimate condition of the market the slump repairs the confirmation also, the loss of the investor if stock after city not the elephant investor predict of decline so,, also double.

Every 100 dollars such as the market price of a certain stock, the investor think its price already a high, it holds slump, but in the its hand only have 10,000 dollar funds but not soon and should grow the stock. He think that a great deal of distress sale should grow the stock then repair into after price decline to obtain the high sum excess fare, hence he decides to do the security deposit short seller to trade. That investor and coupon the company signs the reputation bargain agreement, the dictum security deposit comparison is 25%, thus, that investor then from the coupon the company borrow the stock 4 hands combine to throw with the market price. Afterward and soon, the stock's price falls to each 80 dollars indeed as expected, that investor then buy stock back to give to the coupon company and settle accounts with it. After deduct various expenses, the each hand stock of that investor earns the excess fare 1700 dollars,4 hand stock total amounts earning profits 6800 dollars.

If the estimate mistake, the investor will suffer the loss because soar of the stock price.

Suppose after investor throw a stock the price does not fall anti- rise, in order not to the stock price further soars to bring more great damage, that investor decide to buy stock back with each 120 dollars price, thus each hand stock result in loss in business 2300 dollars,4 hands result in loss in business 9200 dollars totally.

The stock reputation trade most the characteristics of show the 著 is to borrow money to buy the stock and borrow the stock to sell the stock. Speak popularly, the capital is little and can also speculate in stocks, have no stock and also can sell the stock in hand. This invests to do the industry together similar, because of the investor hand of from have the capital gold limit, big and parts of funds must to the bank application the loan have similar of place. Say in a specific way, the stock reputation trades to include following a few characteristics:

1. the stock reputation trade inside of dual reputation stock trade with part of payment and borrow toward the broker go into of rest and parts of buying, its shortage part, then borrow toward the broker go into of mat payment build up the foundation in reputation. The broker mat pays the price difference style of the part, the investor can compensate this part of difference in amount payments and mats to pay parts of payment interests in the days to come are antecedent. This is the broker together the investor both parties' a layer of reputation relation.

On the other hand, how the difference in amount payment that the broker mat pay is get off? For this, the broker have to borrow funds toward bank with the amount of money of pay this part, thus of the bank and broker also exists the layer reputation relation. The bank also is the loan to borrow into the broker of the square and cans compensate this part of amount of moneys and be multiply by the principal in the days to come while put loan of borrow funds the interest for trust the foundation.

Therefore, if these two heavy trust relations be in need of one layer, the stock reputation trade and then didn't possibility that establish.

2. the stock reputation trades the medium mat payment interest investor after making the business contract through the reputation bargain, of the investor and the stock certificate company continues to exist a kind of lending relation, concrete but speech, act for the investor the stock certificate company that the mat pays to buy the amount of money as to it's the agency advanced money item wants to collect the certain comparison of interest, be called the mat payment interest; Same, sell goods the interest that the payment also requests the customer to pay the certain comparison towards selling the posterity for the conservancy for the stock certificate company that the investor advances money the stock selling.

3. the stock reputation trades to take spot economy as the principle stock reputation to trade although have it the special business method, from handed over the angle of mow the way to speak, this kind of trades the way in accordance with the spot economy basically. After the mat head trade clinch a deal, business the both parties must be immediately pure to become friends with to mow, moreover at hand over to mow to expect the business both parties all with the cash or stock on hand( stock) carries on hand over to mow, this with spot economy of way similar. Its difference is just in the cash ( or stock) to have a part is to borrow something to come. For example" routine day" that American New York Stock Exchange rule hands over to mow the balance of accounts, then point after clinch a deal the fifth world noon carries on hand over to mow, if the investor carries on the business with the own money and stock all, the hour of balance of accounts is certainly to also hand over to mow with the own money and stock, this is the spot economy. If one part of money of the investor oneself, the rest shortage is pay by the broker mat, or have no enough stock but be pay by the broker mat of, belong to the reputation bargain at this time so.

4. the trade amount and the security deposit comparisons that the stock reputation trade carry on the security deposit reputation's trade, trade must hand over the certain quantity of 纳 of cash( hand over the stock to also press market price to folded to calculate at that time cash) be the security deposit. The cash of this certain quantity from the security deposit comparison to certain.

The security deposit comparison is draw up by the National Central Bank. The security deposit comparison higher hour, the quantity that investor pay cash is big, the person who makes the security deposit reputation bargain corresponds the decrease, thus repressing the investment need, the stock trade amount lower, the whole stock market is then not enough active. If the security deposit comparison is lower, then will stimulate the desire that the investor purchases the stock, making the bank funds transfer the stock market in great quantities at the same time, thus making the whole stock market active, the trade amount enlarge. But lead such as the security deposit comparison low, also may bring the negative effect. At this time if many investors all make use of the security deposit reputation to trade, will make the broker mat pay parts of quantity aggrandizements, not only thing bank funds transfer the stock market in great quantities, but also resulting in the bank letter loan extend, causing currency depreciate, the creation inflation, then make the whole market merchandise price soar, the business enterprise cost enlargement, the profits descend, the rate exaltation of stock City that business enterprise publish, subsequently cause the whole stock market breakup is go to the whole national economy depravation. The important reason that American stock market greatly collapse is the security deposit comparison provision in 1929 too low, with the result that the bank currency threw in the quantity to increase fierce but trigger of.

Be showed from this, the establishment of the security deposit comparison is very big to the stock market function. The nation should throw in to measure the circumstance well timed adjustment security deposit comparison according to the each period stock market and currency. Currently the international community security deposit comparison is high and low and different, low to 10% the following, be up to 100%, and usually adjust, but the general maintenance is or so in 50%.