This is the leverage ratio in foreign exchange margin trading. The ratio of 1 to 100 means that banks and dealers provide you with 99% of the funds for each foreign exchange transaction, and you pay 1% of the funds for trading.

For example, if you have funds of $ 1W, you need $65,438+0000 as a margin to trade a standard hand. At this time, if you pay $65,438+0000, the bank will provide you with $99,000, so that you can control the amount of funds of $65,438+00W for trading.

This leverage ratio is beneficial to people with less transaction funds, resulting in less income and narrowing the distance between them and the rich. Leverage ratio is very popular because it provides a small and wide trading mechanism.