How to view margin and short selling rates for a specific stock?

How to view margin and short selling rates for a specific stock on the App:

Click the yellow "Margin" icon in the upper right corner of the stock chart page, and the system will pop up a prompt box explaining whether the stock supports margin trading or short selling, as well as the relevant margin ratio, reference rate, and other information.

Special Notes:

Some individual stocks may not be open for short selling due to liquidity, risk control, or regulatory reasons, even if they support margin trading.

If you see "Short Sale Pool Remaining = 0", it means there is currently no available short selling quota, but the stock itself supports short selling.

If the initial margin is 100%, or it shows '--', it means margin trading or short selling is not supported.

Initial Margin for Long Position

Definition: The initial margin for long position refers to the minimum amount that investors must deposit into their margin account when opening a long position (i.e., buying stocks). This is usually part of the stock purchase price, as stipulated by the exchange or broker.

Example: If the exchange requires an initial margin ratio of 50%, and an investor wants to buy stocks worth $10,000, they need to deposit $5,000 as initial margin.

Maintenance Margin for Long Position

Definition: The maintenance margin for long position refers to the minimum margin level that must be maintained in the account while holding a long position. If the account margin falls below this level, investors will receive a margin call, requiring them to deposit more funds or sell some stocks.

Example: If the maintenance margin ratio is 30%, and the investor's stock market value drops to $8,000, they need to maintain at least $2,400 (30% of $8,000) in margin. If the margin in the account is less than $2,400, investors need to add more margin.

Initial Margin for Short Position

Definition: The initial margin for short position refers to the minimum amount that investors must deposit into their margin account when opening a short position (i.e., selling borrowed stocks). This is to ensure that investors have the ability to bear potential losses when stock prices rise.

Example: If the exchange requires an initial margin ratio of 50% for short selling, and an investor wants to short sell stocks worth $10,000, they need to deposit $5,000 as initial margin.

Maintenance Margin for Short Position

Definition: The maintenance margin for short position refers to the minimum margin level that must be maintained in the account while holding a short position. If the account margin falls below this level, investors will receive a margin call.

Example: If the maintenance margin ratio is 30%, and the market value of the stocks the investor shorted rises to $12,000, they need to maintain at least $3,600 (30% of $12,000) in margin. If the margin in the account is less than $3,600, investors need to add more margin.

Short Interest Rate

Definition: The short interest rate refers to the interest rate paid by investors to stock lenders when borrowing stocks for short selling operations. This is one of the costs of short selling transactions.

Example: If the short interest rate is 5%, and an investor borrows stocks worth $10,000 for short selling, they need to pay $500 in interest per year (5% of $10,000) to the lender.

Short Sale Pool Remaining

Definition: Short sale pool remaining refers to the number of shares available for borrowing for short selling operations. This value will change with market demand. If short selling demand is high, the short sale pool remaining will decrease, and vice versa.

Example: If a stock's short sale pool remaining is 50,000 shares, it means there are currently 50,000 shares available for investors to borrow for short selling operations. As more investors borrow stocks for short selling, this value will decrease accordingly.

By understanding these terms and their operations, you can better grasp the margin requirements and risk management in US and Hong Kong stock trading.

How to view margin and short selling rates for a specific stock on the Web:

Click the yellow "Margin" icon in the upper left corner of the stock chart page, and the system will pop up a prompt box explaining whether the stock supports margin trading or short selling, as well as the relevant margin ratio, reference rate, and other information.