The leverage effect of foreign exchange transactions is also quite common in China. Traders can trade 65,438+00 to 65,438+000 times as long as they pay 65,438+0% margin. What's more, the margin is as low as 0.5%, and the transaction is as high as 200 times. Because leveraged foreign exchange transactions have low capital requirements for investors, they can hold positions indefinitely; Coupled with flexible trading methods, it has attracted many investors. Because of the time difference between Asian market, European market and American market, it has become a 24-hour global foreign exchange market. No matter where investors are, they can participate in any market transactions at any time. The foreign exchange market is a market without time and space barriers. Leveraged foreign exchange trading seems to be a high-risk financial leveraged trading tool. Because the participants in margin trading only pay a small percentage of the margin, the normal fluctuation of foreign exchange prices is magnified several times or even dozens of times, and the gains and losses brought by this high risk are amazing. On the other hand, the daily turnover of the international foreign exchange market can reach more than 1 trillion dollars, and many international financial institutions and funds participate in it. The economic policies of various countries change at any time, and all kinds of unexpected events occur from time to time, which may be the reasons for the large fluctuations of exchange rates. Large organizations employ a large number of human resources, obtain first-hand information from various channels, and the investment team uses the analysis results to make profits in real time. Although the amount of margin for leveraged foreign exchange trading is small, the actual funds used are huge, and the foreign exchange price fluctuates greatly every day. If investors misjudge the trend of foreign exchange, they will easily be wiped out. In case of unexpected market conditions, if measures are not taken in time, not only the principal will be completely lost, but also the price difference may be added. Investors must not take it lightly. When determining the leverage ratio, we must understand the risks.