2026Exhibition Trade Overview Concept
What is Margin
Expansion is a trading method that signals investors to invest in borrowed money to reap higher profits from price fluctuations. The following are the Concepts related to Expansion:
Borrowing funds
In open trades, investors can borrow funds from trading platforms or brokers to purchase large or large Assets (such as Stocks, Cryptos, etc.).
margin
Investors need to deposit a certain amount of money on the Trading Platform, which is called Margin, that is, collateral for borrowed funds.
Leverage effect
Investors can trade using leverage to purchase larger scale assets with smaller funds.
For example, if an investor only needs to provide a 10% guarantee to trade Assets with $10 in other funds, for example.
Risk and Profitability
The potential profit from margins is substantial, but at the same time it increases the risk. In the event of a bad market situation, investors' losses may exceed the amount of the margin, resulting in large budget losses.
Risk of closing
If collateral does not adequately support Hold Positions, Trade Platforms, or strengthens the Plateau, the current market price does not automatically Sell Asset Assets for a long time.
Margin Borrowing Ratio
The Margin Loan Ratio is a sample of the funds borrowed by investors and other private funds in a trade. This ratio helps investors understand our progress and dive into risks.
Margin Ratio: Borrowing Ratio = Borrowed Funds Margin Borrowing Ratio = Margin Borrowing Funds
Margin Requirement Ratio (Margin Requirement): Typically set by a trading platform or broker, represents the ratio of the funds that investors need to deposit on their own in the total trade.
If investors want to buy $10,000 worth of Assets in an expanded way, the broker requires a guarantee ratio of 20%. Where:
Margin = 10,000× 20% =$2,000
Borrowed funds = 10,000−2,000=$8,000
Borrowing Ratio = $8,000: $2,000 =4
This shows that the investor has a loan-to-value ratio of 4:1, and for every $1, funds control $4 assets. However, the higher the loan ratio, the higher the cost. The risk is higher, the profit may grow, and the risk is equally high. If the market price falls, the value of the Assets held by investors may fall, leading to the underwriting of the margin call, or in the event of a Margin Call, investors may be required to replace collateral or a flat rate.
What is Call Expansion/Margin Call?
Margin Call, also known as “Margin Call”, is a notice issued by a broker to investors asking for additional funds to meet margin requirements. Before making margin investments, each broker sets minimum margin requirements for each investor and requires a certain percentage of funds in the account. A “Margin Call” occurs when an investor's net worth of account funds falls below this level. At this point, investors can respond in three main ways:
Replenishment:
Investors can add funds to the account and deposit additional funds to meet the minimum margin requirements.
Closing position:
If investors are unable or choose not to follow the funds, the broker may strengthen the plateau by automatically Selling some or all of your Hold Positions to prevent further losses.
Adjust Hold Positions：
Investors can choose to reduce their Hold Positions to reduce collateral requirements.
As soon as you hold the market price of an asset to a certain level, the investor must sell the asset immediately and sell it immediately. Eliminate avoidable losses while freeing up assets that can be redistributed among other volatile investment assets.
When Can I Trade?
In Futu, it is not possible to make a simple share sale.Trade Fair。
Trade Advantage of Expansion
At Futu Frying Expansion, you can enjoy 5 great benefits:
1. OfferMargin Rate(Annual interest rate):Low interest rates effectively reduce investment costs. The annual interest rate is 365 days for one year, calculated on natural days. Annual interest rate adjustments are made weekly to reflect changes in the MMF exchange rate ExchangeRates
Futu Global Major Markets Year-over-Year Growth Rate | |
Hong Kong stocks | 6.8% |
US Equities | 4.8% |
2.8% | |
A shares | 8.8% |
Singapore Stocks | 8.80% |
2.Enhance Purchasing Power of Assets: Use leverage to maximize profits
3.Hong Kong US Stock Gap: Support for Multiple Securities Trading to Reverse Market Momentum
4. Unified Buying Power: Cross-market Trade without the need to exchange the MMF, helping you avoid the risk of exchange rate fluctuations
5. Margin is Daily Zero Interest: Designed for short-sighted investors, buy and sell at 0 interest every day, helping you maximize your potential return!
How to Open an Open Account and Trade?
Go toFutu Internet, and register a new account.(Register now)
Open an integrated account with a Futu account, click below to open it now and enjoy the bonus of opening up to USD.(How to open an account)
New customers in the Futubull App will see their account selection when they open. You can use this option to apply for a Margin Trading Account.
Existing customers with cash accounts can upgrade through the Futubull App. Click “Account”, select the cash account you want to upgrade again, then click “Free upgrade” to apply for the upgrade. Generally, only 1 business day is required to complete the upgrade.
