You should be talking about highly leveraged investments, such as buying foreign exchange or futures. For example, if you pay a deposit of 5,000 yuan, and the leverage is twice, you can invest 10000 yuan, and at the same time amplify the risks and benefits. If you lose money, you can deduct it directly from your deposit. When your deposit reaches the minimum ratio, such as 70%, it means that you have lost 65,438+00.

explain

Take $6,000 as an example. If you buy 1 Euro/USD (one point is1USD):

Leverage 1: 20 times: 5,000 USD is occupied, and there is 1000 USD in the account, which can resist the risk of 100. When the market price fluctuates upward and loses 100 points, the system will force the liquidation. (extremely risky)

1: 100 times leverage: it occupies 1000 USD, and the account still has 5,000 USD, which can resist the risk of 500 points. When the market price fluctuates upwards and loses 500 points, the deposit will be recovered and the system will force you to close your position. (general risk)

1: 400 times leverage: it takes up $250 and the account has $5,750, which can resist the risk of 575 points. When the market price fluctuates upwards and loses 575 points, the deposit will be recovered and the system will force you to close your position. (Compared with 1: 20 and 1: 100 times leverage, the risk is lower. )

Finally, it can be concluded that the lower the leverage ratio, the smaller the risk, when the amount of funds in the account is the same and the number of lots is the same (1 contract is called 1 lot)! If you are a novice, you can register a simulated account first, see how foreign exchange speculation is done, choose different levers, see what gains and differences are, and learn slowly. Lever is also a double-edged sword. Too high or too low leverage ratio is not good. When it is too high, it is easy for us to grasp our positions well and allocate funds well. When speculating in foreign exchange, we must carefully choose the lever.