Give a simple example to illustrate the relationship between leverage and short position in foreign exchange margin trading.
To do 1 hand EUR/USD, you need a deposit of 1400 USD with leverage of 100 times. If the customer's total capital is $2,000 and the remaining available deposit in the account is $600, that is, if the reverse fluctuation exceeds 60 points, the position will explode.
To make 1 EUR/USD, you need a deposit of 700 USD with 200 times leverage. If the customer's total capital is $2,000 and the remaining available deposit in the account is 1300, that is to say, the position will be broken if the reverse fluctuation exceeds 130.