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What does the leverage of foreign exchange mean?
The leverage of foreign exchange is the financing multiple, which is a transaction in which a small amount of money is used to invest several times the original amount in order to obtain a return or loss that is several times the fluctuation of the investment target.

The international financing multiple or leverage ratio is between 20 times and 400 times, and the standard contract in the foreign exchange market is 654.38+10,000 yuan per lot (referring to the base currency, that is, the previous currency of the currency pair).

Foreign exchange leveraged trading rules

A. calculation of profit and loss

Profits and losses in the quoted currency (floating profits and realized profits/losses are converted into US dollars):

(1) USD/JPY, USD/CHF, USD/CAD.

(selling price-buying price) * contract face value * contract quantity = profit and loss denominated in USD.

Dollar-denominated gains and losses:

(2) AUD against USD, GBPUSD and AUD against USD.

(selling price-buying price) * contract face value * contract quantity = profit and loss denominated in USD.

The above calculation process does not include commission fees.

B. Freight rate calculation

Interest calculation:

(1) USD/JPY, USD/CHF, USD/CAD.

{[(opening price * contract face value * contract quantity * interest rate) ]/360}* days = USD interest.

Interest calculation:

(2) AUD against USD, GBPUSD and AUD against USD.

[(opening price * contract face value * contract quantity * interest rate) /360]* days = US dollar interest.

Fund custody fee:

Custody rate * custody days * number of contracts = fund custody fee.