What is the process of foreign exchange trading? Is there leverage?

What we call foreign exchange margin trading is to say leveraged trading, the greater the leverage, the smaller the risk, people who have done it know for example: Account: 5000USD Leverage 1:

100 Margin required to do 1 lot: 1000USD (Note: How much margin is relative to direct currency) Then you can bear the risk of 400 pips of fluctuation If it is a leverage of 1:200, then the required margin is:

500usd then you can bear the risk of fluctuations of 450 points, and the rest of the rest does not need me to say more In addition, margin trading is only a feature of foreign exchange spot, and the income has nothing to do with it, the key depends on the direction you do right or wrong, how many hands you do, but the leverage is large and the ability to resist risks is large.

I know this, and the forex WikiEye is not bad.

Huishibao, ICBC Huishitong, CITIC Xinhui Investment, HSBC Huitong, etc. Speculating in foreign exchange is not illegal, and foreign exchange trading is a legal investment behavior in China.

Foreign exchange transactions can also be carried out in China, but the trading platform is a bank, and not only the buried group is guaranteed to trade liquid fuel. Now most people do foreign exchange trading is margin trading, foreign exchange margin model orange in the country has not been opened, in the gray area. How so?

If the law does not prohibit it, it can be done. At present, the country does not have a single law and regulations.

Foreign exchange margin business is prohibited. Therefore, domestic investors will choose Hong Kong platforms or foreign platforms for foreign exchange transactions, which are overseas investments.

There is no violation of the law, so understand the difference between the two. It is recommended to choose the investment method that suits you according to your own economic situation and investment needs.

There is no leverage for buying and selling foreign exchange in the silver vertical chain bank, and only when buying and selling liquid foreign exchange on the foreign exchange platform can there be leverage.

Different foreign exchange platforms have different leverage requirements, so you can choose the platform according to your own needs.

Usually the foreign exchange margin requirement is 1%-5% of the potential value of the transaction, which is equivalent to the leverage of 1:20 1:100, as long as the customer opens a "margin" account, you can reach the size of the transaction, to say the principle, that is, the dealer financing to the customer, so that the customer and the small capital can participate in a larger scale of transactions, obtain greater returns or bear higher risks.

Now the leverage of forex margin trading has :

There are more than 400 kinds of points, the basic trading unit of foreign exchange margin investors is called "lot", which is composed of 100,000 units of base currency (but some brokers can arrange to trade with a mini lot, with 10,000 yuan as the basic unit of trading, and now most of the domestic mini disks), the basic currency is the currency on the left side of a currency pair (GBP in GBP USA is the basic currency), and foreign exchange transactions are bought and sold in the basic currency.

Hello, the advantage of speculating on foreign exchange margin trading is that customers can freely choose leverage, according to their own capital and trading habits, they can choose 100 times leverage, 200 times leverage, 400 times leverage. Generally, people with trading experience will choose 200 times leverage, 200 times leverage is the most suitable in foreign exchange margin trading, it occupies less margin, and investors have a greater ability to resist risks when trading. Risk resistance is for situations where there are no large spreads and no commissions.

400 times leverage is relative to the risk, reducing half of the margin, increasing the free margin, at this time one hand occupies 35 US dollars, so that the risk is greatly reduced. The higher the leverage, the greater the loss you will face. Therefore, how to control it should be judged according to long-term trading experience and habits.

At the beginning of the foreign exchange margin, 100 times the leverage is the most common, because when people choose the platform, the platform, the default is 100 leverage type, then 100 times the leverage means that he does not feel what this relatively low leverage means, his disadvantage is that it occupies more margin, such as the current 100 times leverage on a platform, 500 US dollars account, then the ** hand of the euro occupies about 145 US dollars, just imagine, At this time, the free margin is 355 US dollars, and when the trend of the euro is contrary to the trend judged by the customer itself, or it is greatly affected by the market, and it fluctuates up and down by two or three hundred points, then the position will be liquidated. Because of this, many people are starting to move to the mode of 200x leverage or even higher.

How to choose leverage when speculating in foreign exchange: In foreign exchange trading, because of the role of trading leverage, investors only need to pay 1 to 10 margin to carry out 10 to 100 times the amount of trading, and then you can get a very high return, which is what we call "small to make big". At present, the leverage ratio provided by the foreign exchange trading platform on the market is different, from 10 times to thousands of times are everywhere, among them, the most commonly used leverage ratio of the regular trading platform is 50 times, 100 times, 200 times, and the highest is 400 times, and according to the investigation of the regulatory authorities, the leverage ratio of 100 times is the most appropriate.

**Allocation of funds for trading** is generally not very restrictive, all can be played to the fullest is undeniable.

There are several such things:

Foreign exchange leverage has a magnifying glass effect, which can efficiently improve the utilization rate of funds and magnify the multiple of funds, which is the essence of leverage in foreign exchange. It magnifies the principal, not the gain or loss.

If you use 200 times foreign exchange leverage, you can also take more than 600 points.

This is the high foreign exchange leverage to fight back against the low foreign exchange leverage, and the risk taking is used to do it.

If this is the case, the risk of foreign exchange trading should be subjectively controlled, and if foreign exchange traders pursue huge profits, liquidation will soon come.

Use the leverage of the foreign exchange platform to control the amount of foreign exchange positions, objectively prevent investors from increasing their positions, heavy positions, and cut off investors' gambling from the source.

The leverage of domestic foreign exchange trading is generally 100-400, for example, the leverage that TRA can apply for is OK.

How to understand it: leverage is the reciprocal of the margin ratio. After paying the deposit, the goods in property are completely yours.

Then you have to accept the market ** volatility of the whole shipment. For example, if you need to pay 10% of the margin, then the leverage is 10; If you are required to post a 1% margin, then the leverage is 100. Take buying multiple orders as an example, if ****, you have the profit of the entire batch of goods ****; If ****, you suffer the loss of the entire shipment **.

If the loss exceeds the amount of margin you have previously paid, and you do not pay additional margin, the market will force you to sell your goods, which is known as liquidation. The lower the margin ratio, the higher the leverage. The same amount of money can buy more goods, the impact of market fluctuations is naturally greater, and the risk is higher.

Of course, the setting of margin trading is also due to a certain extent because the ** fluctuation of the trading goods themselves is not very huge. In terms of foreign exchange transactions, the exchange rate is based on the economic development level of each country, and the exchange rate is strictly controlled by each country. If the trading object itself fluctuates greatly, such as **, there is no need to trade on margin at all.