What is foreign exchange margin trading:

Foreign exchange margin trading uses financial leverage. The leverage provided by foreign exchange brokers is 20 times, 50 times, 100 times, 200 times, 500 times and 1000 times. If leverage is not needed, a foreign exchange transaction needs a deposit of $65,438 +00W. But using the leverage principle, assuming that it is 200 times leverage, trading 1 hand will cost 500 dollars. Other funds are advanced by the broker. It greatly improves the utilization rate of its own funds, and at the same time, the risks are multiplied. Margin trading is widely used. Like futures trading, foreign exchange trading, gold trading, crude oil trading and stock margin trading, they all use margin trading and play pure digital games.

Firm foreign exchange transactions:

One situation: you have RMB in your hand now. If you want to hold foreign currency, travel, shop overseas, or do foreign trade business with your company, you can exchange RMB for foreign exchange at the bank, and there will be an exchange rate. The exchange between currencies also fluctuates, and the exchange rate is different in different periods. The bank will exchange it with you according to the timely exchange rate of the day. This is a firm transaction, without any leverage, and the number of transactions is unlimited.

There are two situations: you use funds to do foreign exchange margin trading, which is also a firm trading, with or without leverage. But it is also a firm foreign exchange transaction. Otherwise, it is a simulated transaction.

I hope the above answers can help you. If you want to know more about foreign exchange transactions, I suggest you search for "mastering foreign exchange series videos" online. There are many episodes I have seen before, and they are very detailed, from simple basics to in-depth. I hope the above can help you.