Suppose there are two investors, A and B, who buy $6,543,800+with margin and firm offer respectively, and the price is Euro: USD =0.653. As A uses foreign exchange margin trading, its principal needs 6500 euros (assuming the margin ratio is 1%). B It adopts the firm trading mode, so it needs 650,000 euros. Since the exchange rate at the time of selling is Euro: USD =0.648, investors A and B can make a profit:

A:100× (0.653-0.648) = 5,000 euros.

B:100× (0.653-0.648) = 5000 euros.

On the contrary, if the exchange rate at the time of selling becomes Euro: USD =0.668, then their loss is:

A:100× (0.668-0.653) =10.5 million euros > 6,500 euros, with a loss of 6,500 euros.

B:100× (0.668-0.653) =10.5 million euros.

By comparing the foreign exchange margin with the real trading, it can be clearly seen that the foreign exchange margin plays a good leverage role, which can obtain a higher investment rate with less investment, and even if there is a loss in the margin trading, the maximum loss amount is the amount of the margin.