Financing a purchase is a method of buying and selling stocks, and in plain English, it is a way to borrow money to buy stocks.

When an investor needs to buy a certain stock, but cannot complete the stock transaction due to insufficient funds, it can be realized through the financing method.

Financing can amplify the scale of your operation, such as when you are optimistic about a certain stock want to get involved in a big way and the hands of the money is not much when you can borrow money from the brokerage firm to buy the stock, when the stock rises to the target price, you can sell the stock to liquidate the borrowed money, thus amplifying your gains.

Financing and securities financing are becoming important means of trading in the stock market. Similar in nature to financing is coupon financing. Securities financing creates the conditions for you to make money by shorting a stock. When you are bearish on a stock, you can borrow the stock from the broker, then sell it, and when it goes down you buy the stock back to the broker and get the difference.