Buy An Empty Transaction-How to buy an Empty Transaction
Buy an empty transaction also known as "long transactions." Buying an empty transaction is the use of borrowed money that traders in the market, buying futures with a view to the future, when prices rise, and then thrown high, profit from voting. In the modern stock market, buy an empty transactions are generally carried out by the use of margin accounts. When traders think that a certain stock prices rising trend, he had to pay part of the bond, securities firms borrowed money to buy the stock futures, buying the stock are not removed, will serve as collateral for loans, deposit in a securities company. If, later, the stock prices turned up, when up to a certain extent, he once again sell shares to the market at high prices will be part of the proceeds to return loans to securities companies, thus ending its status to buy empty. Traders by buying and selling price gap between the two transactions to obtain benefits. Of course, if the market price forecast of the direction and traders contrary, then the air are not only unprofitable to buy, and will suffer losses. As in the above process, the trader does not have any stock handling, but in the market to buy shares on the transaction, it is called "buying empty" transactions.
Buy an empty deal was financed with borrowed money is. When carrying out securities trading to retail investors, are using their own funds, but traders buying space-time, in addition to the delivery of a small amount of margin, the bulk of the funds the purchase of shares by the securities firms advance, which mainly rely on borrowed money to carry out transactions . The whole process of buying an empty transaction by selling the stock after buying the first two transactions constituted.
Buy an empty transaction - buy the main steps in an empty transaction
1) investors and securities dealers and enter into contracts accounts book, open a credit trading account.
2) investors in accordance with statutory proportional to buy the securities dealer to pay the required deposit, securities dealers designated by customer purchases of securities and advances to customers to buy the securities of the remaining funds needed to complete the delivery. Financing period, the securities dealers financing to buy the securities to customers in control, when the financing to buy the securities prices fall, the customer must pay up within the specified time maintenance margin, or else he could on behalf of the clients open positions closed.
3)the financing period, the customer can always entrust securities dealers financing to buy the securities sold to finance repayment of principal and interest derived from the purchase price, or at any time bring their own cash to repay the financing. Maturity can not be restored, and securities dealers have the right to compulsory liquidation end.
The main features of buying an empty transaction The main characteristics of long transactions:
1) traders to buy shares most of the funds needed by the securities company to lend.
2) different from ordinary commodity trading, long before the transaction is subject to the whole process of buying stocks, selling stocks after the second transaction to complete.
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