Core Concepts - Leverage financing allows investors to borrow funds based on their own capital to invest in specific assets, amplifying potential returns or losses through a defined leverage ratio [1] - The principle of "trend priority" suggests using leverage only in clear upward market trends, while "moderate leverage" recommends starting with a 1:1 ratio and potentially increasing to a maximum of 1:2 after consistent profits [2] - Leverage financing and financing leverage share a common mechanism of amplifying investment scale through borrowed funds, differing mainly in terminology [3] Cost Structure - The primary cost of leverage financing is the interest on borrowed funds, calculated daily based on the formula: financing amount × annual interest rate ÷ 365 × actual usage days [4] - Additional fees may include a 0.1% service charge on the financing amount, with a minimum fee of 100 yuan, charged only once when financing becomes effective [4] Collateral Management - Collateral can include cash and securities, with cash fully counted and stocks valued at different rates based on their category, such as blue-chip stocks at 70% [6] - Regular evaluations of collateral are necessary, and if stocks are removed from the eligible list, they must be replaced within five trading days to maintain financing eligibility [6] Liquidation Mechanism - If the collateral ratio falls below 120%, a margin call is issued, requiring the investor to replenish collateral within two trading days [7] - Failure to meet the margin call results in forced liquidation, prioritizing high-risk and high-position assets [7] Risk Scenarios - Case studies illustrate potential losses, such as a 15% drop in stock price leading to a total loss of 60,000 yuan after forced liquidation due to insufficient collateral [8] - Other scenarios include significant losses from stock suspensions and interest payment defaults, highlighting the importance of timely actions in leverage financing [8] Exit Procedures - Active exit involves selling the financed assets to repay the principal and interest, with remaining funds becoming available for use [10] - In passive exits, after forced liquidation, remaining funds are returned to the investor's account, but any outstanding debts must be settled within a specified timeframe [10]