Financial Risk Analysis And Precaution Of Margin Investment

Margin trading is the kind of business that qualified security companies lend money to customers for their security purchase or lend securities to customers for their short selling while claiming a certain percentage of collateral. In the western countries, the stock market started earlier, it has a history more than 400 years. Margin trading in China started relatively late. March 31, 2010,the official opening of Shanghai stock exchange margin trading system, the pilot margin trading members accept declaration, marked margin trading launched formally in our country. By the end of 2014, the balance of margin trading reached 10256.56 hundred million yuan, annual growth of 195.98%, has to open an account number of investors has reached 3 million people, the enthusiasm of investors to participate in activity in margin trading business.Margin is different from ordinary a credit transactions in margin trading, is a nature of options and futures business, itself has the price discovery, increase investors financing channels, improve the securities and exchange mechanism, and other functions, is our country capital market must develop business. In addition, leveraged trading characteristics and forced to unwind system directly enlarge the risk of trading, the consequences of increased risk.This article through the case and the method of theory combining with the related theory in margin trading and Changjiushenghua financing broke in 2013 events, based on the analysis of the financial risk of the investors securities lending and borrowing, and proposes the corresponding risk prevention advice.