financing balance refers to the difference between investors' daily financing purchase and loan repayment. If the financing balance increases for a long time, it means that the investor's mentality is biased towards the buyer, and the market is popular, which is a strong market; On the contrary, it is a weak market.

the trading period of financing margin is 6 months, and those who use financing margin must be settled within 6 months, so when the financing balance of a stock increases, it means that the stock will also face selling within 6 months. For example, the financing balance of a stock increased greatly from 1 yuan in early August to 2 yuan at the end of the month, and then the stock was adjusted repeatedly or slightly around 2 yuan, so that in January, most of the investors who financed the stock would sell it, which played a certain role in the decline of the stock. In case of sudden changes in the market during the period, that large amount of financing balance will become a blockbuster, causing the stock to plummet, because many investors have to sell their stocks to settle in advance because they want to add guarantees.