To do credit margin trading, you must have certain credit funds. In the futures market or foreign exchange margin, you can use 654.38+10,000 yuan for credit transactions in the futures market, and the remaining 90,000 futures exchange members (primary dealers) can lend it to you within your credit limit. In the foreign exchange market, you can use1000000 yuan to make a credit transaction of10000000 yuan (this is the same as futures, foreign exchange dealers will give you a credit within your credit limit, but this will pay interest), of course, you have to bear the corresponding risks. When doing credit transactions, you won't get the ownership of the subject matter, but you have the price difference caused by the price fluctuation marked on the market-you have the right to make a profit when it is positive, and the obligation to compensate for the loss when it is negative.
Dynamic risk is also this thing. Its calculation method is: (latest price-market price) × number of contract units × leverage multiple ÷ amount of funds in the account.
When the funds in your account are insufficient to support the book loss, the dealer has the right to ask you to increase the margin to meet the credit guarantee standard. Otherwise, you have the right to forcibly close your contract to meet the initial margin requirements. The losses caused by this shall be borne by you (the account owner).
Good luck with your investment.