Foreign exchange leveraged trading, also known as margin trading.As the name implies, it is to use a small amount of capital to invest several times the original amount, in the hope of obtaining a multiple of the fluctuation of the investment subject, or loss, different trading leverage ratio is different.Futures are typically 10 times leveraged, that is, if the market moves 10 percent in the opposite direction of your expectations, you lose 100 percent of your money (margin), and if the market moves in the same direction as your expectations, you gain 100 percent.With 100 times leverage and a 10 percent change in the market price, the gain or loss on the investment could reach 1,000 percent.Because margins (small sums of money) do not move in proportion to the underlying assets, the risks are high.
Foreign exchange leverage trading, also known as foreign exchange margin trading, refers to signing a contract with a (designated investment) bank, opening a trust investment account, depositing a sum of funds (margin) as a guarantee, by the (investment) bank (or brokerage) set up a credit operation limit (that is, 20-400 times the leverage effect).The investor can freely trade spot foreign exchange of the same value within the quota, and the profit or loss caused by the operation will be automatically deducted or deposited from the above-mentioned investment account.Small investors can use smaller funds, obtain larger trading quotas, enjoy the same use of foreign exchange trading as global capital for risk avoidance, and create profit opportunities in exchange rate fluctuations.
Leveraged trading of foreign exchange, leverage for 20 times to 400 times, between the foreign exchange market in a standard contract for a $100000 per hand (refers to the monetary base, is the money to a currency before), if the leverage provided by the broker for 20 times, with the business needs to 5000 yuan (if buying and selling of currency deposit and account currency is different, you need to convert) margin;If the leverage ratio is 100 times, then the transaction requires a margin of 1000 yuan.