To speculate on gold , grasp the leverage ratio like this:
low leverage
If the leverage ratio is relatively small, such as 1:50, when investing, although the cost is reduced, the reduction is not much, and there is still a threshold for some investors to come to the cost. The leverage ratio is small, and the market fluctuates more, but the leverage ratio is small. Investors will be less profitable, and if this continues, investors will slowly lose interest in investing in a less volatile market.
high leverage
Although the leverage ratio is too small, it will affect the profitability of the investment, but the leverage ratio that is too high will also affect the profitability of investors and threaten the cost. For example, the leverage ratio is 1:1000. The spot gold market fluctuates constantly, and the leverage ratio is very large, so that investors’ returns will be polarized many times, either serious losses or high profits. There are too many uncontrollable factors.
Choose the right platform
The leverage ratio of 1:100 is more suitable, but the spot gold investment market is huge, and it is inevitable that there will be some fraudulent platforms. These fraudulent platforms will use some low cost or even zero cost to defraud investors to open accounts, and then steal investors. funds. Therefore, when choosing a platform with a leverage ratio that suits you, you also need to check whether the platform is a liar and whether it has legal capital qualifications to make relevant investments.
At present, more and more customers are investing in gold , and one of the obvious reasons is that spot gold has leveraged trading. When investing, investors use leverage to reduce their costs and amplify their profits. However, the size of the leverage ratio also affects the size of the trading risk.
Leverage ratio is also called leverage ratio. When investors conduct margin trading, they use a small amount of capital to invest several times the original amount, in the hope of obtaining several times the rate of return relative to the fluctuation of the investment target. In financial trading markets, leverage is the ratio of the actual value represented by a futures or options position to the cash amount paid to open the position. The higher the leverage ratio, the greater the profit or loss per unit change in the market price, which means that the investment risk is higher.
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