What is margin trading and short selling?

1. Margin Trading

(1) Margin trading is a trading model where investors use funds or securities in their own securities account as collateral to borrow more funds from brokers for securities purchases, and repay the principal and interest within the agreed period.

(2) After registering with BiyaPay, investors can engage in margin trading on BiyaPay, enjoying up to 4x leverage financing.

2. Short Selling

(1) Short selling is a trading model where investors use funds or securities in their own securities account as collateral to borrow securities from brokers and sell them, then buy the same quantity and type of securities at a later time to return to the broker, and pay the corresponding short selling interest.

(2) After registering with BiyaPay, investors can engage in short selling on BiyaPay, enjoying up to 4x leverage financing.

(3) The cost of short selling is relatively complex. Generally, the cost of short selling is related to the risk level of the stock, the liquidity of the stock, etc., and the short selling cost is not fixed.

(4) Short selling may face the risk of short positions being liquidated due to insufficient available stocks for lending or stock lenders recalling stocks.

Reminder:

After short selling, when the current available stocks for lending are insufficient, brokers may liquidate the short positions without notifying customers.

Not all stocks can be traded with margin or short sold. Click on the specific stock trading page to check whether it supports margin financing or short selling.