Every foreign exchange transaction is to exchange one currency for another. The basic trading unit of foreign exchange margin investors is called "hand", which consists of 654.38 million units of base currency. Buying a pound/dollar means buying 65,438+million pounds at the price of 1.5852 dollars to 1 pound, which is158,520 dollars. Similarly, sell a lot of pounds/dollars from 1 pounds to 1.5847 dollars, and the amount is 158470 dollars.

Foreign exchange is a margin transaction. When you make more pounds, you buy pounds and sell the equivalent dollars at the same time. This process is like putting your money from your left pocket to your right pocket, so you didn't actually take out 65,438+10,000 yuan, just paid a certain deposit. If you choose 400 times leverage, the margin for completing the first-hand transaction is 65438+ million divided by 400 equals 250 monetary units.

This is the charm of foreign exchange margin trading.

You can download and write foreign exchange learning courseware at Minghui School.