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LegiEX: What are the roles of securities accounts

When it comes to securities accounts, the first reaction of many people is to buy and sell stocks. In fact, securities accounts can be used not only to buy and sell stocks, but also to buy bonds, funds, reverse repurchase of treasury bonds, and brokerage wealth management.

Speaking of which, can you briefly sort out what other functions of a securities account besides the traditional stock trading we are familiar with? Classified by product or business type, the functions of a securities account mainly include:

Stock functions, bonds and treasury reverse repurchase functions, fund functions, brokerage wealth management and other functions. At the same time, various major functions can be subdivided.

1. Stock functions

Investors must know the stock-related functions of securities accounts the most. The most commonly used securities account function for investors is to buy and sell stocks and purchase new shares.

(1) Financing and margin trading

Financing and margin trading, also known as credit trading or margin trading, refers to investors providing securities to securities companies, borrowing funds to buy securities (financing transactions) or borrowing securities and selling them (margin trading), and repaying them within the agreed period The act of borrowing funds, securities and interest.

(2) Trading Hong Kong Stock Connect stocks

With the successive opening of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, investors can purchase Hong Kong Stock Connect stocks after opening an A-share securities account, satisfying the appropriateness conditions and opening related functions. Hong Kong Stock Connect stocks provide investors with more choice of investment targets.

2. Bond and Treasury reverse repurchase functions

3. Fund functions

There are two types of funds that can be bought in securities accounts: one is off-exchange funds and the other is on-exchange funds.

Four, brokerage financial management functions

With the gradual transformation of brokerage business into wealth management, various brokerages have launched more securities management products.

For example, many brokers have launched night-time wealth management products such as "cash treasure" or "currency treasure".

The so-called night wealth management products mean that after the market closes, the idle deposits of the contracted customers are invested in high-security fixed-income assets such as bank agreement deposits, and the gains at night are higher than demand deposits.

It is hoped that the introduction of these functions will help investors to improve the efficiency of capital use and better add value to their assets.

LegiEX's innovative solutions are your gateway to the foreign exchange market. Since its establishment in 2016, we have been continuously striving to build and maintain a good trading environment and are committed to providing customers with the best quality services.

Our team has extensive customer experience and expertise. These valuable experiences, especially in the special needs of customers and technological innovation, give us a unique and unique advantage.

We constantly update and improve our trading system, and strive to build a bridge between customers and the trading market, so that you can become a winner in the foreign exchange market.