Foreign exchange margin trading (also known as foreign exchange leverage trading) is essentially the purchase and sale of contracts. First, the international quotations of foreign exchange are all five-digit. Taking the euro as an example, the euro/US dollar is 1.2800, which means that 1 euro can be exchanged for 1.2800 US dollars. When the euro fluctuates from 1.2800 to 1.2801 or 1.2799, the fluctuation is 0.0001, which is called 1 point. Second, internationally, the generally accepted rules are as follows: a standard contract is worth US$100,000 (US$100,000), and a mini contract is worth US$10,000 (US$10,000). How much is one point worth? Just take a ride! 100,000 USD*0.0001=10 USD, 10,000 USD*0.0001=1 USD. Therefore, no matter for 1:100 leverage or 1:400 leverage, 1 point of a standard contract is 10 US dollars, and 1 point of a mini contract is 1 US dollar. Third, 100,000/100 times = 1,000 US dollars, 100,000/400 times = 250 US dollars, that is to say, to make a standard contract, if the leverage is 1:100, you need to use 1,000 US dollars of your account funds. If it is 1: 400 leverage requires 250 US dollars of your account funds. So how much money is still active in your account? How much risk can you withstand? For example, take the account capital of 6,000 US dollars and buy 1 Euro/USD down (one pip is 10 US dollars): 1: 100 times leverage: 1,000 US dollars of funds are occupied, and 5,000 US dollars are active in the account, which can resist 500 The risk is 500 points. When the market price fluctuates upward and loses 500 points, a margin call will occur and the system will force you to close your position. (Risk is average) 1: 400 times leverage: 250 US dollars of funds are occupied, and 5750 US dollars are active in the account, which can resist the risk of 575 points. When the market price fluctuates upward and loses 575 points, a margin call occurs and the system will You will be forced to close your position. (The risk is smaller than 1:100 times leverage) From this we can draw the following conclusion: under the conditions of the same account funds and the same number of lots (1 contract is called 1 lot), the higher the leverage ratio, The less risk there is of a margin call! At the same time, it should be noted that if the leverage is high and the margin occupied by each order is small, it may be uncontrollable to place more orders, and the risk will increase.

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