Don't Only Watch the Total Margin Balance. Tomorrow, Watch Net Financing Repayment.

The total amount borrowed to trade stocks can be misleading, while repayment activity shows whether anyone is being forced to sell.

2026-10-27 · 1 min read · source @tuolaji2024

• Some people believe the sell-off is no longer about whether it can be rescued. More margin calls may happen today, and the cause is not only the AI bubble.
• The conclusion is direct: tomorrow, look at the margin trading data.

• In short, margin trading means buying stock with borrowed money (margin financing), or selling borrowed stock (short selling).
• Looking only at the margin balance tells you how much money has been lent in total. It does not show whether pressure is rising or falling.
• A more useful measure is financing purchases as a share of turnover. It shows how much of the trading is supported by borrowed money.

• Net financing repayment means more money was paid back than newly borrowed.
• This is often a sign of forced deleveraging. It is a more direct signal than the balance alone.

Don't only look at the total. Check whether borrowers are adding leverage or paying it back. Tomorrow, watch net financing repayment first.