Trading leverage

The international financing multiple or leverage ratio is between 20 and 400 times. The standard contract for the foreign exchange market is 100,000 yuan per lot (referring to the base currency, which is the previous currency of the currency pair), if the broker provides If the leverage ratio is 20 times, then the margin of purchase and purchase requires 5,000 yuan (if the currency of the sale and purchase is different from the account margin currency, it needs to be converted); if the leverage ratio is 100 times, the purchase price requires 1000 yuan. The reason why banks or brokers dare to provide a large proportion of financing is because the average daily volatility of the foreign exchange market is very small, only about 1%, and the foreign exchange market is a continuous transaction, plus perfect technical means, banks or brokers completely You can use less margins from investors to withstand market volatility without having to take risks yourself. Foreign exchange guarantee metals are traded in spot, and they have some characteristics of futures trading, such as buying and selling contracts and providing financing, but their positions can be held for a long time until they are actively or forced to close their positions.

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