First, margin financing and securities lending can amplify the principal through leverage, while stocks cannot. Second, foreign exchange is a two-way transaction. A certain amount of exchange rate can make money regardless of whether the exchange rate rises or falls, while stocks can only wait for the rise. Third, foreign exchange is traded 24 hours a day, while stocks have fixed opening and closing times, so the trading time is short. Fourth, the mainstream of foreign exchange is buying and selling between 5-6 currencies, which is relatively easy to choose. There are thousands of stocks, which is easy to see. Fifth, there is a large amount of foreign exchange funds, and no institution has the ability to manipulate the exchange rate, while stocks are all robbed by bookmakers. Of course, if the direction of foreign exchange returns, there may be short positions. After the short position, there will be no funds in the account, the stock will be quilted, and there will be equity. When we say foreign exchange gold trading, we mainly refer to foreign exchange gold trading with margin, which is based on the forecast of foreign exchange rate and gold price. The principle is basically to complete the transaction after paying a certain margin.

In foreign exchange transactions, a standard hand is 654.38+ million currency units. For example, a single euro against the US dollar is a transaction of about 654.38 million euros.

In gold trading, a standard lot number is 100 ounce. Now the price of gold is 12 17.8 USD an ounce, and 100 oz is12.1780,000 USD.

In actual transactions, because we only buy and sell foreign exchange rates and gold prices, we are not actually buying and selling foreign exchange and gold. Therefore, in fact, it is not necessary to pay 654.38+million euros or 12 1.78 million dollars, only a certain margin is required.

How much margin to pay depends on the level of leverage. If you choose leverage 100 times, doing foreign exchange is 100 currency unit divided by 100, which is equal to the deposit of 1000 currency unit. If you choose a leverage of 400 times, it is 100 divided by 400, which is equal to 250 monetary units (different, such as 654.38+ million euros, about 654.38+0.28 million US dollars).