Margin trading, also known as financing trading or margin trading, refers to the act of a customer pledging their stocks in their account to Fuchen in order to borrow more funds from Fuchen to buy stocks.
When conducting transactions, if the order amount exceeds the cash purchasing power, the system will automatically use financing to purchase; If not exceeded, only cash will be used for purchase.
It should be noted that financing transactions can amplify leverage. For example, if 1x leverage is used, non financing assets will increase by 50% when the stock price rises by 25%, and correspondingly, non financing assets will decrease by 50% when the stock price falls by 25%. Therefore, it is recommended that clients who use financing transactions have strong risk tolerance.