What is financing and short selling?

1. Financing transactions

Financing transaction is a trading model in which investors borrow more funds from securities firms to buy securities by using the funds or securities in their own securities accounts as collateral, and repay the principal and interest within the agreed period.

After registering with BiyaPay, investors can conduct financing transactions on BiyaPay and enjoy up to 4x leverage financing.

2. Securities trading

（1）Securities trading is a trading model in which investors borrow securities from securities firms to sell securities with their own funds or securities in their securities accounts as collateral. At a later time, they buy the same amount and variety of securities and return them to the securities firms, paying the corresponding securities lending interest.

（2）After registering with BiyaPay, investors can conduct margin trading on BiyaPay and enjoy up to 4 times leverage financing.

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

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

Tip:

• After the margin trading, in the case of insufficient stock available for lending, the broker may position squaring the short position without notifying the client.
• Not all stocks can be used for financing and short selling. Click on the specific stock trading page to see if it supports mortgage financing or short selling.