Foreign exchange margin means that investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers (the leverage effect of credit operation limit is 20-400 times, and it is illegal to exceed 400 times) to conduct foreign exchange transactions. Investors can freely buy and sell equivalent spot foreign exchange within the quota, and the gains and losses arising from the operation will be automatically deducted or deposited into the above investment account. Therefore, small investors can obtain a larger trading quota with smaller funds, enjoy the same foreign exchange trading purposes as global capital to avoid risks and create profit opportunities in exchange rate changes. Generally speaking, speculating in foreign exchange is an investment behavior.

All platforms have a compulsory liquidation mechanism, that is, if you only lose the margin, you will automatically liquidate. Some platforms will be flat when the margin ratio is less than 30%, and some black platforms do not have a strong liquidation mechanism, that is, they will be light if they lose money.

Second, the deposit is the money you occupy when you make the bill.

The handling fee for your transaction is the spread, which is charged by the dealer.

Advantages and advantages of foreign exchange margin:

Margin trading, make full use of leverage principle, so as to be small and broad.

Foreign exchange margin trading can be operated in both directions and is very flexible. Investors can be bullish or bearish, so that the exchange rate of the currency will fluctuate within one day. Based on the principle of two-way operation, investors can not only buy at a low price and sell at a high price for profit; You can also sell at a high price and then buy at a low price to make a profit. These two characteristics are very similar to futures trading.

In the 24-hour and T+0 trading modes, foreign exchange margin trading can be carried out 24 hours (except for the global closing on weekends). Moreover, the T+0 model also makes investors' transactions very casual and convenient. Investors can enter the foreign exchange market for trading at any time, and investors can change their investment strategies at will.

There is no expiration date for foreign exchange margin trading, so investors can hold positions indefinitely. Of course, investors must first ensure that there are enough funds in their accounts, otherwise they will face the risk of being forced to close their positions if the amount of funds is insufficient.

Investors choose multiple currencies when trading foreign exchange margin, and all convertible currencies can become trading varieties.