What Is the Amount Financed?

In margin trading and margin trading, the financing balance refers to the total amount of outstanding financing. The calculation formula is: current day financing balance = previous day financing balance-current day repayment amount + current day financing purchase amount. The financing balance is generally an internal bank statement that refers to the amount of financing through the bank's financing of enterprises (loans, bills, discounts, etc.).

Financing balance

In margin trading and margin trading, the financing balance refers to the total amount of outstanding financing. The calculation formula is: current day financing balance = previous day financing balance-current day repayment amount + current day financing purchase amount. Financing balances are generally internal to banks

Financing balances are generally internal to banks

When the financing balance or margin balance of a single underlying security reaches 25% of the tradable market value of the listed securities, the stock exchange may suspend its financing purchase or margin trading on the next trading day, and announce it to the market. When it drops below 20%, it will resume on the next trading day.

When the financing balance of a single underlying security reaches 25% of the tradable market value of the securities listed, the stock exchange may suspend its financing purchase on the next trading day and announce it to the market. When the financing balance of the underlying security is reduced to less than 20%, the stock exchange may resume its financing purchase on the trading day of the next day and make it available to the market.