First of all, explain your sentence, "If you use a position of 1000 dollars, 500 dollars can lose 5000 points, which is enough for you to lose 1 year."

It should be said that you lose $500 by making a fluctuation of 0.0 1 hand by 5000 points.

When opening an account, make sure that your leverage ratio is generally up to 400.

Foreign exchange investment in opening positions is very important, which sometimes leads to unexpected opening positions.

The standard number of foreign exchange transactions is more than 654.38 million currency units.

If you have 1000 dollars and 400 times leverage.

For example, if you are in Europe and America, the price in Europe and America is 1.6000.

Then you need 1.6000 times 10 to do it.

It is equal to USD 65,438+USD 600,000, and the required deposit is USD 65,438+USD 600,000 divided by 400, which is equal to

400 yuan, then there is 1000 left in your account, and MINUS 400 equals 600 yuan, because it is a standard.

The manual fluctuation of one point is $65,438+00, so your funds can only withstand 60 points of fluctuation. If it exceeds 60 points, it will lead to an empty position, and the system will automatically help you close the position.

Therefore, when doing foreign exchange, we must control the position, that is, the number of hands should not be too heavy, otherwise it will easily lead to the explosion of positions.

There is also a question of the margin ratio. Margin ratio refers to the ratio of available funds in your account.

When the margin used reaches 100%, it will explode (it used to be 15%).

You can see it on the trading software, reminding me again of the importance of controlling positions.

I hope I can help you!