Lack of clear specification of the background in the law for the deposit to discuss the type of deposit, imprest type of margin, the margin of the prepayment type, rental deposit, renovation margin, the margin of the deposit type, retain the return of the right margin, double the return of the effectiveness of the margin are defined to determine their legal effect, is necessary.
The margin is used for accounting of bank deposits and other financial institutions margin nature of the deposit.
The margin also refers to one or both of the parties to the contract to ensure contract performance, and retained in the other party or deposited money in the third person. Popular margin in the real economic life, there are two main forms: one is the parties to the contract in order to ensure the realization of their claims and require the other to provide the margin. Part of the project, such as the construction contract, the construction side in accordance with the project when the project settlement terms of the warranty terms will be payable section reserved for warranty gold, used to guarantee the fulfillment of the warranty obligations of the construction side; such as the quality of the project, the construction side is not repaired construction before the warranty gold to repair it yourself or ask a third party repair. Another form of deposit, when the two sides established in the contract, in order to ensure the fulfillment of their obligations to the common recognition of a third person (usually a notary public) escrow deposit. Any party before the full performance of its contractual obligations shall not be taken away margin. If one party defaults, the other from the deposit of liquidated damages or compensation.
Can be seen, the margin also has a similar deposit guarantee contracts to achieve. On deposit function, not just limited to the "Civil Law" and "security law" provisions of the deposit as a debt to fulfill a way of security. In practice, the parties are free to agree the role of function of the deposit. The deposit payment according to their purpose, as the conclusion of the contract of guarantee conditions of entry into force of the contract, proof of a contract, or termination of the contract price. Therefore, the deposit in addition to the functions performed by secured debt, also has a covenant functionality into about features, the card about the function and maintenance of the contractual relationship, prevention casual breach of contract function. These functions do not have the margin.
We should also see the timing and amount of deposit retained or deposited is no limit. Parties are free to agree before the performance of the contract, the performance of the contract can be; the amount of the deposit is equivalent to the amount of debt does not like the deposit, shall not exceed 20% of the total price of the main contract, and must be agreed in the contract or when the contract is signed before payment.
Margin trading also known as virtual trading, margin trading is that investors use their own funds as collateral, the financing from the bank or broker to enlarge to carry out foreign exchange transactions, which is to enlarge the funds of investors in the transaction. The ratio of the size of the financing, usually from a bank or broker decisions, the greater the proportion of the financing of customer needs funds to pay less. International financing multiples, also known as leverage. Example: the market's standard contract for 100,000 yuan per hand, brokers provide leverage ratio of 20 times, the sale of single-handedly 5000 margin; if the leverage ratio of 100 times, The sale of single-handedly takes 1000 yuan deposit. Dare The reason why the bank or broker to provide a larger proportion of the financing, because of the daily average volatility of the market is very small, only about 1%, and the market is a continuous transaction, coupled with improved techniques, the bank or broker can investors less margin to withstand market volatility, without having their own risk.
