Abstract: The creation of dynamic pledge, both the object and transfer of possession, meets the requirements of the Civil Code. Dynamic pledge is not different from the traditional pledge and whether pledge is valid should be analyzed from specificity and delivery. Although dynamic pledge is a security interest, the protection to the pledger in the Civil Code is mainly focused on post-enforcement, not on pre-enforcement. Due to its indivisible characteristics of security interest as well as the abstract description of the object, a subsequent over-security may arise, which leads to conflicts between the legal security rights of the pledgee and the business rights of the debtor. The conflict can be resolved through simple and supplementary contract interpretation, especially based on the customary business practice to affirm the legal claim to release excess objects. The substantive result is that the business rights have priority over the excess security right, and the debtor needs not to pay compensation because of no loss. Based on these the rights conflict is finally resolved. The dynamic pledge can be interpreted under the norm system and regulations targeting practical trading models will limit financial innovation space, so it is unnecessary to stipulate dynamic pledge in the Civil Code.