The financing balance indicates how much of the money bought on the stock was financed (meaning how many people asked the brokerage firms to borrow money to buy), which means that those who are optimistic about the stock dared to borrow money to participate.

1, financing balance rose, indicating that the market tends to buyers; financing balance fell, indicating that the market tends to sellers.

2, financing balance refers to investors daily financing to buy and return the accumulated difference between the borrowing.

The securities financing transaction, the investor to the securities company to deposit a certain amount of margin, as a whole as a collateral for its debt to the securities company. Securities financing transactions provide investors with a new way to make profits and avoid risks. If an investor expects the price of a security to fall soon, he can borrow securities and sell them, and then return the securities by buying them at a lower price to make a profit; or hedge the price fluctuations of the securities he already holds by selling them through securities financing to hedge the price fluctuations of the securities he already holds.

Financing and securities trading as a common trading method in most of the world's securities markets, its role is mainly reflected in four aspects:

I. Financing and securities trading can integrate more information into the price of the securities, which can provide the market with the opposite direction of the trading activities, when the investors believe that the stock price is too high and too low, you can through the financing of the purchase and selling of the securities. This will help to rationalize stock prices and contribute to the formation of the market's intrinsic price stabilization mechanism.

Second, financing and securities trading can amplify the supply and demand of funds and securities to a certain extent and increase the trading volume of the market, thus enlivening the securities market and increasing the liquidity of the securities market.

Third, financing and securities transactions can provide investors with new trading methods, can change the securities market unilateral aspect, for investors to avoid market risk tools.

Four, financing and bond financing can broaden the scope of business of securities companies, to a certain extent, to increase the application of the securities company's own funds and its own securities channels, after the implementation of the turn of the circulation can be added to other funds and securities financing allocation methods to improve the efficiency of the use of financial assets.

Baidu Encyclopedia - Financing and securities trading