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What do you mean by the margin ratio?
The down payment ratio refers to that in a certain transaction or contract, one party is required to pay a certain amount of down payment to ensure its performance of contractual obligations. The ratio here refers to the ratio of the margin amount to the transaction amount. The margin ratio can be determined according to the specific circumstances. For example, the margin ratio in banking business is generally around 20%.

In futures trading, you also need to pay a certain percentage of margin. This ratio is generally determined according to the variety of transactions, contract rules and market risks. Generally speaking, the margin ratio stipulated by futures exchanges is relatively low, but if the market price fluctuates greatly, the margin ratio may rise.

When buying a property, you usually need to pay a certain percentage of deposit. This ratio is generally about 10% of the house price, in order to ensure that the buyer earnestly performs the transaction contract and avoid malicious breach of contract. If the buyer breaches the contract without authorization after signing the contract, the seller may deduct the deposit as compensation according to the contract. Therefore, for buyers, paying down payment is an important means to protect their own interests.