Margin Trading (3)

Margin Trading

🔸Introduction🔸

In the previous article, we introduced how to build indicators with the margin trading database. This article will be the last one of this series, and we will help the readers become familiar with the Day Trading Statistics database and the Balance of Securities Provided as Financing Collateral database.

Highlights

  • Day Trading Statistics database
  • Balance of Securities Provided as Financing Collateral Database

📍Day Trading Statistics database

Day trading refers to a form of speculation in securities in which traders buy and sell the same security on the same trade day. The feature of day trading is that this kind of speculation won’t keep the security until the next trading day, so traders don’t need money to buy the security. Traders just have to bear the difference in price on the trading day. This approach allows traders to gain a big profit with little money. This is one of the most common trading approaches short-term traders use in the stock market.
Although day trading won’t cost traders much, this approach involves higher risk than usual stock trading. Traders should consider their risk tolerance before taking this approach.
The following are the steps to enter the database:
1️⃣ Click “Taiwan Market DB”➡️ TEJ Equity ➡️ Day Trading Statistics

Margin Trading
Margin Trading

📍Balance of Securities Provided as Financing Collateral database

In addition to general margin trading and securities lending, investors can use data such as the number of shares purchased through collateral financing to determine the leverage ratio and whether the stock is showing signs of overheating. Since May 03, 2016, Securities Firms can offer loans for “Non-Restricted Purpose Loan.” Investors can use the stocks in their accounts as collateral and borrow up to 40–60% of the funds. In the short term, it is different from traditional financing; Securities lending transactions and viewing collateral balance levels can also infer the current status of leveraged funding in the market.
This database provides various data on securities firms engaged in lending and lending according to different business categories to enable investors to finance and complete stock transactions. In addition to observing the market popularity through margin financing and securities lending, the “collateral balance” can also be included for comparison. In addition, one of the particular applications is “Non-Restricted Purpose Loan.” The Financial Supervisory Commission expects to implement the T+0 delivery method in the second quarter of 2022, that is, through “Non-Restricted Purpose Loan,” using their own stocks as collateral, the redemption of funds two days in advance, the process only needs to pay the Security Firms interest fees. Accomplish the goal of early collection.
The following are the steps to enter the database:
1️⃣ Click “Taiwan Market DB”➡️ TEJ Equity ➡️ Balance of Securities Provided as Financing Collateral

Margin Trading
Margin Trading

🔸Conclusion – Margin Trading🔸

In this article, we illustrate two kinds of databases in margin trading. First, in the day trading database, we can learn more about the day trading information of a company. Through Day Trading Volume, we can understand the level of speculation in the market. Second, in the Balance of Securities Provided as Financing Collateral database, investors can see if the market is overheated through the number of shares purchased. Securities Firms offered loans for “Non-Restricted Purpose Loan” since 2016, which provides investors with more ways to raise funds. Though the fundraising is more diverse, investors must pay attention to the risks. If you have any further queries or suggestions regarding the TEJ database or margin trading, please do not hesitate to contact us by phone or email.

☎️: 02–87681088
✉️: tej@tej.com.tw

🔸Related link🔸

⭐️TEJ official website
⭐️Medium TEJ-API
⭐️E-Shop
⭐️ TEJ Instagram: tej87681088

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