The leverage ratio in foreign exchange transactions is typical. Take foreign exchange trading as an example to illustrate the specific embodiment of leverage ratio: in foreign exchange trading, we usually find a reliable foreign exchange trading company, and then deposit a certain margin in this company to start trading.

Let's take the US dollar and RMB as examples. Recently, the exchange rate of RMB against the US dollar has been around 6 RMB from 1. Suppose our deposit is RMB in 600 yuan. We buy and sell dollars and foreign exchange.

Suppose the leverage ratio we choose at this time is 10 times. The leverage ratio is 10 times, which means that we can trade 10 times compared with 6000 yuan, with deposits in 600 yuan and 600 yuan. And this way of buying and selling is called leverage.