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What does it mean to speculate on foreign exchange leverage ratio?
1, leverage ratio (leverage ratio), the leverage ratio is the ratio of the stock price to the warrant price at a certain point in time, which reflects the cost ratio of the investment stock to the investment warrant. Assuming that the leverage ratio is 10 times, it only shows that the cost of investing in warrants is one tenth of that of investing in stocks, which does not mean that when stocks rise 1%, they will invest in warrants.

2. Foreign exchange margin trading (also known as foreign exchange speculation) refers to signing a contract with a (designated investment) bank, opening a trust investment account, depositing a sum of money (margin) as a guarantee, and the (investment) bank (or brokerage bank) sets the credit operation limit (that is, the leverage effect is 20-400 times, and it is illegal to exceed 400 times). Investors can freely buy and sell equivalent spot foreign exchange within the quota, and the gains and losses arising from the operation will be automatically deducted or deposited into the above investment account. Therefore, small investors can obtain a larger trading quota with smaller funds, enjoy the same foreign exchange trading purposes as global capital to avoid risks and create profit opportunities in exchange rate changes. Generally speaking, speculating in foreign exchange is an investment behavior.

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