【TEJ Dictionary】Margin Trading (3)
Day Trading Statistics database & Balance of Securities Provided as Financing Collateral database
🔸Introduction🔸
In the previous article, we have introduced how to build indicators with the margin trading database. This article will be the last one of this series, and we will lead the readers to get familiar with the Day Trading Statistics database and the Balance of Securities Provided as Financing Collateral database.
Highlights of this article
1. Day Trading Statistics database
2. Balance of Securities Provided as Financing Collateral database
– 📍Day Trading Statistics database
Day trading refers to a form of speculation in securities that traders buy and sell the same security on the same trading day. The feature of day trading is that this kind of speculation won’t keep the security to the next trading day which means traders don’t need to have money to buy the security. Traders just have to bear the difference in price on the trading day. This approach allows traders to gain a big profit with little money. This is one of the most trading approaches that short-term traders use in the stock market.
Although day trading won’t cost traders a lot of money, this approach is with higher risk than usual stock trading. Traders should consider their risk tolerance before taking this approach into action.
The following are the steps to enter the database:
1️⃣ Click “Taiwan Market DB”➡️ TEJ Equity ➡️ Day Trading Statistics
– 📍Balance of Securities Provided as Financing Collateral database
In addition to general margin trading and securities lending, investors can also use data such as the number of shares purchased through collateral financing to determine the leverage ratio and determine whether the stock is showing signs of overheating. Since May 03, 2016, Securities Firms can offer loans for “Non-Restricted Purpose Loan.” Investors can use the stocks in their accounts as collateral and borrow up to 40–60% of the funds. In the short term, it is different from traditional financing; Securities lending transactions and viewing collateral balance levels can also infer the current status of leveraged funding in the market.
This database provides various data of securities firms engaged in lending and lending according to different business categories to enable investors to finance and complete stock transactions. In addition to observing the market popularity through margin financing and securities lending, the “collateral balance” can also include for comparison. In addition, one of the particular applications is “Non-Restricted Purpose Loan.” The Financial Supervisory Commission expects to implement the T+0 delivery method in the second quarter of 2022, that is, through “Non-Restricted Purpose Loan,” using their own stocks as collateral, the redemption of funds two days in advance, the process only needs to pay the Security Firms interest fees. Accomplish the goal of early collection.
The following are the steps to enter the database:
1️⃣ Click “Taiwan Market DB”➡️ TEJ Equity ➡️ Balance of Securities Provided as Financing Collateral
🔸Conclusion🔸
In this article, we illustrate two kinds of databases. First, in the Day Trading database, we can know well about the day trading information of a company. Through Day Trading Volume, we can understand the speculation level of the market. Second, in the Balance of Securities Provided as Financing Collateral database, investors can see if the market is overheated through the number of shares purchased. Securities Firms offered loans for “Non-Restricted Purpose Loan” since 2016, which provide investors with more way to raise fund. Though the fundraising is more diverse, investors still have to pay attention to the risks. If you have any further queries or suggestions regarding the TEJ database, please do not hesitate to send your inquiries or ideas by phone or by email to us.
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