A financial trading account with leverage ranging from 5 times to 2,000 times (the A-share stock index futures account is 5 times), deposit funds (such as 1,000 usd), and purchase a certain unit (unit: : Lot. The standard lot is 1 lot, the mini lot is 0.1 lot, and the micro account is 0.01 lot). After the currency pair (for example, 100usd), the part that has been used will not change with the rise and fall of the exchange rate, but will remain. That part (that is, the margin, the remaining 900usd) is changing (that is, profit and loss)-------------Use additional funds to ensure that your transaction can continue until the position is closed (including; profit closing) , loss cutting and liquidation), and generally your used funds (100usd) will have a loss percentage before liquidation, that is: assuming that the liquidation limit is 20% of the used funds, all your invested funds (1000usd) There will be only 80usd left. If it is 80%, then only 20usd will be left ------- all your remaining assets.
This is margin trading. The risk is as big as the profit. If there is a lack of fund management and strict trading discipline, it can be doubled or liquidated at once, and the speed is fast. When data is released, Time, it only takes a few minutes for the liquidation to double.
Be careful!