The so-called margin is a way to buy the real amount (contract unit) with the first-hand margin to enter the foreign exchange market. Its advantage is that you can enlarge your amount and operate in the foreign exchange market. For example, the minimum unit amount of foreign exchange transactions is calculated by hand. According to international regulations, one-hand euro is actually equal to 65,438+000,000 euros. In other words, you actually need about1100000 RMB to convert a euro into RMB. In the form of security deposit, you only need 1000 USD /2000 USD overnight (equivalent to about RMB 8300/ 16600) to buy the controlling interest of 100000 EUR. In the foreign exchange market with an average daily trading volume of $200 billion, this kind of transaction that enlarges your investment amount is undoubtedly a very favorable investment for small investors.
4. Risks of foreign exchange transactions
Margin trading benefits the people to a great extent. One of the important reasons is that the capital you invest will be amplified by 50 to 200 times. However, if the exchange rate fluctuation of one currency against another currency is too different from your investment strategy at this time, users may lose the amount of deposit you invested, but it will not exceed the amount of guaranteed funds you invested.
For example, if you buy euros at the price of 1. 1500, then your profit position will be set above 1. 1550. If your loss tolerance is less than 3000 yuan, your investment adviser will set it for you in combination with the news background and foreign exchange analysis at that time.
Stop loss point within 30 points (the euro price is calculated as 10 USD). That is before 1. 1470. The risk you need to bear is less than 3000 yuan. The profit is more than 5000 yuan; However, if no loss point is set, additional margin will be allowed when the loss of your margin amount exceeds 70%. The exchange rates between currencies of various countries will change instantly due to various economic and political time, so you need a calm and wise mind in today's foreign exchange market!
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References:
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