For example, the current euro/dollar price 1.2945 has been contracted with 1. If there is no leverage (i.e. 1: 1), the fund should be 1.2945 *. If the leverage is 1: 100, the transaction can be completed with a deposit of 1294.5 USD, which is reduced by 100 times.
Margin trading usually uses leverage ranging from 1: 200 to 1: 500, and the common leverage ratio is 1: 100. At present, the leverage of foreign exchange margin trading provided by domestic banks is generally 1:25, while the leverage ratios given by domestic foreign exchange brokers are 1: 10, 1:20, 1:50,1:/kloc-0.