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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