First of all, explain your sentence "If you use a position of 1,000 US dollars, you can lose 5,000 points for 500 US dollars, which is enough for you to lose for a year."

What you should be referring to here is You will lose 500 US dollars if you make 0.01 lots with a fluctuation of 5,000 points

When opening an account, you need to determine your leverage ratio. Generally, the maximum is 400.

It is very important to take foreign exchange investment positions. Sometimes you are not careful. It will cause a liquidation

A standard lot in foreign exchange trading is 100,000 currency units

If you have 1,000 US dollars and a leverage of 400 times

For example, if you do The price in Europe and the United States is 1.6000

So to make one hand, you need 1.6000 multiplied by 10

It is equal to 160,000 US dollars. Using a leverage of 400 times, the required margin is 160,000 divided by 400 is equal to

400 U.S. dollars, then there is 1,000 left in your account minus 400, which is equal to 600 U.S. dollars, because as a standard, one pip of hand movement is 10 U.S. dollars, then your funds In other words, it can only withstand a fluctuation of 60 points. If it exceeds 60 points, it will lead to liquidation, and the system will automatically help you close the position.

So, when doing foreign exchange, you must control your positions well, that is, the lot size cannot be too heavy, otherwise it will easily lead to a liquidation.

There is also the issue of margin ratio. The margin ratio refers to the ratio of the available funds in your account to the used margin. When this ratio reaches 100%, it will The position has been liquidated (previously it was 15%). This ratio

can be seen on the trading software, so I am reminded again of the importance of controlling the position.

I hope it can help you!