The proportion of foreign exchange advances refers to the ratio of the net value in your account to the margin required for opening your own position when you make a bill.
The proportion of foreign exchange advances is the most direct response to the risk of investors' positions. The greater the proportion of foreign exchange advance payment, the higher the ability of holding positions to resist risks, and the less likely it is to break out during trading. Once the proportion of foreign exchange advance payment drops to 100%, investors' accounts will explode.
Then, for investors, what is the best proportion of foreign exchange advance payment? Generally speaking, it is best for us to open positions, and the margin for opening positions accounts for 10% to 20% of our total funds. For example, if the investor's total capital is $65,438+000, the position margin should not exceed $20. In other words, the proportion of foreign exchange advance payment is 5000%.
In fact, investors do not need to calculate the proportion of foreign exchange advance payment. When investors open positions on MT4, there will be a direct display of the proportion of foreign exchange prepayment, and investors only need to open positions according to the proportion of foreign exchange prepayment.