Leveraged trading is also called virtual trading and deposit trading. It is to use its own funds as a guarantee to provide financing from banks or brokers to amplify foreign exchange transactions, that is, to amplify trading funds. The financing ratio is generally determined by banks or brokers. The greater the financing ratio, the less funds need to be paid.
High leverage facilitates flexible positions, but it is a double-edged sword. For high-level investors, under the premise of strictly controlling risks, profits or floating profits can continue to use high leverage to add positions, which makes it possible to realize profiteering.