Due to the recent market washout in the stock market, a large number of retail investors who opened various leverages faced insufficient maintenance ratios and were notified by the salesperson to make up money, otherwise they would face defaulted delivery!
But what is default delivery?
What will be the impact if we don’t make up the money?
Taiwan stocks currently implement the "T+2" system, Today + 2 day, which means that stocks bought and sold today will be delivered and offset two days later. If there is a holiday, it will be postponed, that is, before 10 a.m. on the second business day. Make statistics.
If you find that the amount that can be deducted is insufficient, the salesperson will usually notify you to make up the money the day before. At this time, you must remember to quickly adjust the position with your relatives and friends, and deposit the money into the account for delivery.
If the account still shows insufficient balance before the deadline, there will be a default delivery situation, which may lead to three major consequences:
1. Civil liability:
Brokers can collect liquidated damages from customers, up to 7% of the transaction amount. The actual amount is subject to the outcome of the court hearing. If your account balance is insufficient, the brokerage firm can continue to pursue the debt from investors as a final resort, including applying to the court for compulsory salary deduction and transferring your monthly salary to the brokerage firm.
2. Criminal liability:
If the default on delivery is serious enough to affect the market order, you may face relevant criminal liability ranging from more than 3 years to less than 10 years.
3. Credit records with financial institutions:
The record of defaulted delivery will be reported to the joint credit reporting system of securities dealers. Any financial institution can inquire about your "bad credit record". In the future, it may be more difficult for you to apply for a credit card or a mortgage loan from a bank!
so!
If you don't know how to trade stocks, don't just learn how to use leverage from other people. Not all young stock gods are so good at it.
After all, the way the money comes, will be paid back in the same way.
Enrich yourself more, have a good investment mentality and enough silver bullets, and then step into the sea of stocks. You will definitely know more than anything else, and you will feel that you are great, and you can transform into a young stock god who has no worries about food and clothing for the rest of your life!
Especially the most exaggerated ones are those who open accounts for their own children, under the pretense of helping them make investments, but then fail to pay attention or make up the money, and then let their own children be burdened with credit bankruptcy since childhood. It is really not worth the gain.
Although there are different elimination periods depending on the seriousness of the circumstances, after all, credit bankruptcy can easily cause a lot of inconvenience in the short term.
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