Current location - Loan Platform Complete Network - Foreign exchange account opening - Lever 1: 100. How many points does it take to double the principal?
Lever 1: 100. How many points does it take to double the principal?
The so-called margin trading (commonly known as "virtual trading" in China) means that every time a trader trades, he (the trader) is allowed to use a sum of money deposited in the broker's account in advance as collateral for the possible losses of the transaction and sign a trading contract to trade. This deposit is called "deposit".

For example, if the settlement amount of each transaction set by the broker is $65,438+0,000,000, and the required margin is $65,438+0,000, it means that only a little more than $65,438+0,000 can be used for foreign exchange transactions.

What is the margin ratio?

Margin ratio, called "margin" in English. For example, if the settlement amount of each transaction set by the broker is $65,438+000,000 and the required margin is $65,438+0,000, the margin ratio is equal to 65,438+0,000/65,438+000,000 = 65,438+0%. Usually, the margin ratio of foreign banks (or brokers) is between 1%-20%. Usually, in the case of large exchange rate changes, the regulatory authorities (futures exchanges or futures management committees) will require brokers to increase the margin ratio to prevent excessive speculation.

What's the difference between foreign exchange margin trading and forex futures trading?

Broadly speaking, futures trading itself is margin trading. In a narrow sense, according to the practice formed in the real world, the two have the following differences:

Forex futures trading is conducted on a fixed exchange and cannot be traded 24 hours a day; Foreign exchange margin trading is conducted through brokers in the global inter-bank foreign exchange market, with 24-hour continuous trading, and there is no such thing as trading only on weekends or national legal holidays (such as Christmas).

Foreign exchange futures contracts have a specific maturity date and can be closed or delivered on the maturity date; However, there is no specific expiration date for foreign exchange margin trading, and it can only be closed and cannot be delivered.

How to calculate the profit and loss of margin trading?

In the margin trading, the margin is only the guarantee of the transaction loss, not the transaction amount, and the calculation of profit and loss is based on the settlement amount of each transaction. If the settlement amount of each transaction set by the broker is $65,438+0,000,000, and the required margin is $65,438+0,000, the profit and loss of each transaction will be calculated as $65,438+0,000,000.

According to the international foreign exchange market practice, for the exchange rate transactions with indirect quotation (USD first) such as USD/JPY, USD/CHF, USD/CAD, the transaction gain and loss = transaction contract amount * (selling exchange rate-buying exchange rate)/exit exchange rate, and the result is the same as the transaction contract amount of the same amount of funds engaged in foreign exchange treasure transactions. For example, the settlement amount of each transaction is $65,438+000,000, and two transactions have been made. Transaction contract amount = US$ 65,438+000,000 * 2 = US$ 200,000, that is, US$ 200,000. The transaction is to short USD/JPY at 65,438+008, and then short USD/JPY at 65,438. Then the selling exchange rate = 108, the buying exchange rate = 105, and the trading profit and loss calculated according to the above formula = USD 200,000 * (108-105)105 = USD 5,465,438.

For direct quoted exchange rate transactions such as EUR/USD, GBP/USD, AUD/USD, the transaction gain/loss = transaction contract amount * (selling exchange rate-buying exchange rate). For example, the settlement amount of each transaction is $65,438+000,000, and three transactions have been made in this transaction. The transaction contract amount = US$ 65,438+000,000 * 3 = US$ 300,000, or US$ 300,000. The transaction is to make more euros at 65,438+0.1045 first. Then the selling exchange rate = 1. 1 158, the buying exchange rate = 1. 1045, and the trading profit and loss is calculated according to the above formula = $300,000 * (1./kloc-0).

There are three other points to note: (1) Usually, when traders enter the market, brokers will give the profit and loss amount of each hand. For example, in the above example of trading EUR/USD, the profit and loss of each lot is $65,438+$00. (2) Under normal circumstances, except for the bid-ask difference in the transaction, brokers do not earn handling fees. However, some brokers charge a handling fee for each transaction or small transaction. (3) Under normal circumstances, in margin trading, the broker shall calculate the interest according to the transaction amount. Usually, the broker pays the trader the interest during the holding period when he is long, and charges the trader the interest during the holding period when he is short.

Why should we calculate the interest during the holding period in margin trading?

In foreign exchange margin trading, the transaction object is the exchange rate of two currencies, which is equivalent to the trader changing currency A into currency B, and the currency A paid by the trader is borrowed from the broker, so the interest of currency A during the holding period is paid to the broker; However, the B currency exchanged by the trader himself is not available, which is equivalent to lending it to the broker, so the broker has to pay the interest of the B currency to the trader during the position. Because the interest rates of the two currencies in the international market are different and change every day, the cost of borrowing from the international market is also different, so the interest difference should be calculated in the profit and loss settlement, which is embodied in the interest item during the position holding period.

How do customer accounts change in margin trading?

When the customer does not hold a position, the funds deposited in the broker's account by the customer are classified as "available margin".

After a customer opens a position, the customer's funds are divided into "used margin" and "available margin", and the sum of the two is equal to the customer's pre-transaction margin, that is, the pre-transaction "available margin". With the change of market conditions, the profit and loss of customer transactions are always reflected in the increase and decrease of "available margin". If the customer trades in the right direction and the transaction is profitable, the "available margin" will increase, otherwise, the "available margin" will decrease.

After the customer closes the position, the sum of the "used margin", "available margin" and the settlement interest during the holding period is equal to the margin after the customer closes the transaction, and it belongs to the "available margin" again.

What is an extra deposit?

After the customer opens the position, the brokerage firm deducts the "used margin" from the customer's "available margin" in advance, and settles the profit and loss of the customer's transaction at any time in the remaining "available margin". If there is a transaction loss, the customer's "available margin" will be reduced. Once it drops to the preset low level of the brokerage firm, the brokerage firm will contact the customer and ask the customer to transfer another sum of money to his account to maintain the position. This behavior is called "additional margin". If the customer fails to remit the account to replenish the trading margin, the brokerage firm has the right to forcibly close the trading position of the customer when the situation deteriorates.

What are the advantages of margin trading?

The object of foreign exchange margin trading is the exchange rate, not the actual currency, and there is no need to deliver the principal. Therefore, we can make bigger transactions with less funds, and achieve high leverage and get twice the result with half the effort.

Lower the investment threshold: the fluctuation of the foreign exchange market is much less than that of stocks and commodity futures, but the trading volume is huge. In the past, this market was monopolized by large banks, and only large institutions and corporate customers could enter. With margin trading, you can trade hundreds of thousands or even millions with a deposit of several thousand dollars, which greatly reduces the investment threshold and is beneficial to individual investors and small enterprises that are unwilling to accumulate funds.

High leverage: the foreign exchange market fluctuates slightly, with an average annual fluctuation of 10-30% and a daily fluctuation of 0.7- 1.5%. From the investment point of view, the return rate of complete transaction is lower than that of stock and commodity futures markets. Through the leverage of the margin ratio, the return on investment is greatly enlarged. If the margin ratio is 2%, the return on investment will be magnified 50 times, which is far superior to the stock and commodity futures markets.

Low transaction cost: the global foreign exchange market is the most ideal and completely competitive market, and the result of its competition is to reduce transaction cost. Investors only bear the bid-ask price difference of 4-5 points, and there are no common transaction costs and various taxes and fees in stock and commodity futures markets. The spread of 4-5 points allows individual investors to enjoy the trading treatment of international big banks.

Flexible means of risk control: the global foreign exchange market operates 24 hours a day, and the market capacity is huge. Brokers can provide more flexible entrustment methods than the stock market and futures market. In addition to the usual market orders and limit orders, stop orders and two-way pending orders (OCO) can also be used to enter the market. Assuming that the order is completed, it is assumed that the optional order is completed (if OCO is done). In the appearance, in addition to the usual market order appearance, limit order appearance, you can also stop loss order appearance and so on. These flexible trading methods greatly improve the risk control ability of trading, which can effectively control risks and guarantee returns.

Two-way profit, fast trading: the global foreign exchange market operates 24 hours a day, with huge market capacity. Investors only need to consider whether the price is satisfactory, and don't have to worry about whether they can buy or sell. They can enter or exit at any time on each trading day, and they can also change their strategies at any time. Investors can click through the internet, telephone or fax to complete the transaction instantly.

Market efficiency: the global foreign exchange market has the characteristics of 24-hour operation and huge market capacity, but also has the characteristics of long-short symmetry and loose supervision that the stock market and commodity futures market do not have. This determines that the foreign exchange market is the fairest and most ideal completely competitive market.

At present, margin trading in the Mainland, such as foreign exchange margin trading, has been traded in Shanghai and Beijing, such as FX Solasia/Trading _ example.htm.

Another example is the gold margin transaction, which is a kind of "gold deferred delivery transaction" launched by Chengdu Gaosaier Gold and Silver Co., Ltd. in Hangzhou, which is more suitable for individual short-term investment. Investors only need to pay a deposit of 10%, at the same time, they can finally withdraw gold, and the leverage ratio is 10.

/cgi-bin/viewone.cgi? gid = 6 & ampfid=527。 itemid=2374 1