Margin trading in Japanese stocks sharply shrinks after market rout
By Junko Fujita
TOKYO, Aug 15 (Reuters) -Trading using borrowed money, or margin trading, in Japan's stock market fell sharply last week as investors were forced to dump stocks during the Nikkei index's biggest fall in nearly 40 years.
BY THE NUMBERS
Margin trading, which involves using borrowed cash from brokerages to ramp up bets in the stock market, is popular among Japanese retail investors.
Margin trading accounts for about 70% of retail trading value, the exchange data shows.
The value of shares bought on margin fell by 907 billion yen ($6.15 billion) to 4 trillion yen in the week ended Aug.9, from the previous week's 4.87 trillion yen, according to Japan Exchange Group 8697.T, which runs the Tokyo Stock Exchange.
The amount hit a record high of 4.98 trillion yen in the week of July 26.
The Nikkei plunged 12.4% on Aug. 5 in the market's biggest single-day decline since the 1987 Black Monday crash and bounced back 10% the following day. The index fell as much as 27% from its July peak above 42,000 by Aug.5.
It has since recovered and is now trading at around 36,721 as of early Thursday.
WHY IT'S IMPORTANT
The sharp drop in shares bought on margin suggests leveraged retail traders - responsible for about 20% of the value in Japan's brokerage trading -- were burned in that week and are likely to be shy about returning for a while.
Margin trade helps investors expand their trading volumes, but it inflates losses when the market is down by forcing the investors to offload shares.
Strategists said the drop in the Nikkei last Monday was exacerbated by such margin calls.
($1 = 146.8300 yen)
($1 = 147.5000 yen)
Reporting by Junko Fujita; Editing by Michael Perry
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
