Stock Terms: T+0&Nbsp; What Is T+0?

Stock terms:

T+0: the so-called T+0 T refers to the date of the stock paction.

Where

The characteristics of the T+0 trading system are:

1, increased speculation and opportunistic opportunism are very suitable for short term speculators.

2, as the main force can be bought and sold at will, it will lead to a widespread knocking. The main force will use the false trading volume to entice the retail investors to change the direction of operation.

3, with the increase in the number of retail pactions, paction costs will increase substantially, which is a great benefit for brokers.

4, the increase in the number of retail pactions and paction costs will lead to an increase in paction costs and thus increase the risk of speculation.

5, small retail ships are easy to turn around and easy to follow up or run away.

6, after losing the "T+1" help or fall, the amplitude of stock index or stock price will increase.

7, if the implementation of the "T+0" paction mode, for small cap stocks have a direct positive effect.

T is the initials of English Trade and is the meaning of paction.

The T+0 paction is a paction method launched by the Shenzhen Stock Exchange at the end of 93, which means that when you buy (sell) the stock that day, when you confirm the paction, you can buy the stock that day and sell it on the same day.

Since January 1, 1995, in order to ensure the stability of the stock market and prevent excessive speculation, China's stock market has adopted the "T+1\" trading system, that is, the stocks bought on that day must be sold on the next trading day.

At the same time, the "T+0\" is still applied to the funds, that is, the funds that can be recovered on that day can be used immediately.

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B shares are T+1, and funds are T+3.

Brokers: only when the "T+0" can be restored to bring back the prosperity of the past, the relevant securities media released the Research Report on the "T+0" swing trading between Haitong and Shenyin Wanguo two securities companies, and recommended that the "T+0 rotation trading" be timely restored, causing widespread speculation among the market participants.

Then, what is the "T+0" swing trading? What kind of impact will the "T+0" swing deal have on the market? Will the "T+0" swing trading system be introduced soon?

What is "T+0" swing trading?

"T+0" swing trading means that the stock purchased on the same day (T) can sell all or part of its stock on the day after the paction. If it is not sold on the same day (T), it may also make a sales Declaration on any trading day on or after T+1.

That is to say, under the condition of "T+0" swing trading, declaring the purchase of stock and confirming the paction will not restrict investors from selling the Declaration on which trading day. Investors can either sell the stocks bought on that day or buy the stocks on the same day that the funds returned on the day they sell the shares.

"T+0" swing trading can reduce investor's position risk and enhance stock liquidity.

The disadvantage of "T+0" is that it can not effectively control the frequency of pactions. Excessive turnover will lead to excessive speculation and false prosperity of the market. Buying and selling short is also difficult to control, so there is a greater risk.

China's Shanghai and Shenzhen stock exchanges have implemented the "T+0" settlement system, but they have been stopped because of excessive speculation.

At present, the trading of A shares, funds and bonds in Shanghai and Shenzhen stock exchanges are all "T+1" settlement system.

"T+0" swing trading

Impact on the market

The trading system has an important influence on the market's activity.

Under the "T+0" trading system, a fund can be traded many times and repeatedly traded. Without increasing the stock of market capital, it can significantly increase the liquidity, activity and trading volume of the market, resulting in obvious capital amplification effect.

In the weak market situation, the "T+0" trading system will help reduce the risk of investment on the one hand. On the other hand, it will also provide investors with more short-term trading opportunities, which will help investors improve their profitability.

In the current management level has implemented the "Securities Trading Commission floating system" and the paction cost of investors has declined, it also provides the necessary technical preparation for the implementation of "T+0" swing trading.

The implementation of the "T+0" swing trading can bring more stamp duty revenue to the country, bring more short-term opportunities for the market, bring more commission income to the broker, help to form the "multi win" situation, and stimulate the weak market pattern to a certain extent.

However, the pformation from "T+1" to "T+0" is only a technical reform measure in the trading system. Although it has a positive effect on the active market, it can not fundamentally change the fundamental characteristics of the bull market or bear market. The fundamental improvement of the market trend still needs to be improved by the performance of listed companies and the overall macroeconomic situation.