The leverage for domestic foreign exchange transactions is generally 100-400. For example, TRA can apply for a leverage of 50.100.200.400.

How to understand it: Leverage is the reciprocal of the margin ratio. After paying the deposit, the property rights of the goods completely belong to you. Then you have to accept market price fluctuations for the entire shipment. For example, if you are required to pay a 10% margin, then the leverage ratio is 10; if you are required to pay a 1% margin, then the leverage ratio is 100. Take buying a long order as an example. If the price rises, you have the profit from the increase in the price of the entire batch of goods; if the price falls, you bear the loss from the drop in the price of the entire batch of goods. If the loss exceeds the amount of the margin you paid before, and you fail to replenish the margin, the trading market will forcefully sell your goods, which is the so-called liquidation. The lower the margin ratio, the higher the leverage. The same amount of funds can purchase more goods, so the impact of market price fluctuations will naturally be greater and the risk will be higher.

Of course, margin trading is set up to a certain extent because the price fluctuations of the traded goods themselves are not very huge. In the case of foreign exchange transactions, the exchange rate is based on the economic development level of each country. The exchange rate is strictly controlled by the governments of various countries. Except for extraordinary moments, the fluctuations in normal times are very small. If the trading items themselves are highly volatile, such as stocks, there is no need for margin trading at all. Nowadays, most of the financial markets are virtual transactions, which of course do not involve the delivery of goods at all. They are more about speculation on price changes themselves. But the leverage of foreign exchange futures trading can be understood this way.