For each commodity, a certain percentage of the trading margin is set according to its contract value. For example, the pound futures content of a contract is 62,500 pounds, which is equivalent to about US$ 88,750 at the exchange rate of1February 6, 993. Customers only need to deposit $4,000 (about 4.5% of the total contract value) in the futures brokerage company to buy or sell a pound futures contract, and this $4,000 is the deposit.
Margin trading, also known as virtual trading and deposit trading, means that investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for foreign exchange trading, that is, to enlarge the trading funds of investors. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less money customers need to pay. International financing multiple is also called leverage. For example, the standard contract in the market is 65438+ 10,000 yuan per lot. If the leverage ratio provided by the brokerage firm is 20 times, the first-hand trading needs a deposit of 5,000 yuan; If the leverage ratio is 100 times, the buyer and the seller need a deposit of 1000 yuan. The reason why banks or securities firms dare to provide a larger financing ratio is because the average daily fluctuation of the market is very small, only about 1%, and the market is a continuous transaction. Coupled with perfect technical means, banks or brokers can completely resist market fluctuations with less margin from investors without taking risks themselves.