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 credit operation limit is set by the (investment) bank (or brokerage bank) (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, so that small investors can obtain a larger trading quota with smaller funds, enjoy the use of foreign exchange trading as global capital to avoid risks and create profit opportunities in exchange rate changes.

In addition to capital amplification, another attractive feature of foreign exchange margin investment is that it can be operated in both directions. You can buy profits when the currency rises (be a long position) or sell profits when the currency falls (be a short position), so you don't have to be limited by the so-called bear market that can't make money.

However, any investment is risky, and no investment activity can be profitable. The greater the leverage, the higher the risk. If you choose the wrong direction, you will still lose money if you go in the opposite direction.