The essence of foreign exchange margin trading is a leveraged foreign exchange investment.
Generally, the firm offer of a bank is leverage-free, that is, if you open an account with 10W, the actual working capital is 10W.
Foreign exchange margin is leveraged. For example, leverage of 100 times means that the funds you can actually operate are 10000 yuan. You can invest with 1000W yuan, and the profits in this investment process belong to yourself. When your loss reaches 10W, the system will force you to close your position and forbid you to continue trading, so your maximum loss is only 10W, and there is no possibility of owing money to the bank.
It means that the bank lends you money to invest, and the leverage of 100 times is to invest with the funds equivalent to your account opening capital 100 times. Therefore, many people like this highly leveraged investment behavior, because it can be small and broad, and reduce cash investment.
For example, a trader needs to hedge the risk of 100 W, so he needs to spend 100 W in cash for foreign exchange hedging, but this will greatly consume his cash flow. Therefore, the leverage effect of foreign exchange margin is needed to reduce its cash investment, and only 1W is needed.
For ordinary investors, the reason is similar.
There are many formal foreign exchange platforms, such as TMG platform. My friends are all TMG platforms because they are relatively stable and safe. Please check Baidu.
Just to tell you
Introduction to the principle of gold foreign exchange short selling.
Why gold can be short, and buying down can also make money. In fact, the reason is that the market lends you gold to sell.
For example, if you think that gold is at a high level of 300,000 yuan/kg, and you want to short (buy) 1 kg of gold, the London gold market will lend you 1 kg of gold to sell at this time, earning 30W yuan, owing the banker 1 kg of gold.
It means that when you say this, you have 30W funds in your hand and owe the banker 1 kg of gold. When you close your position, the system will forcibly buy 1 kg of gold and return it to the trader.
If when the price of gold drops from 300,000 yuan/kg to 200,000 yuan/kg, you only need 20W to buy back one kilogram of gold, and you will earn 10W.
However, if gold continues to soar to 400,000/kg, it will take 40W to buy back a kilogram of gold, so it can accompany 10W.
Introduction to foreign exchange market:
So whenever the foreign exchange market exists, there are usually three waves of market every day.
There are about three waves of market every day, but in fact, it seems to us that there are only two waves of market every day, from 2:30 pm to 5:30 pm and from 8 pm to 1 1 or so.
The market fluctuated slightly in early trading, so it is not recommended to operate. There may be a wave of profit-making market in the early morning, but it is too late to operate.
Also, because there are many markets, few people are easy to fall into them, and it is easy to buy up, buy down and buy size, resulting in losses.
Therefore, I suggest that you should carefully grasp and analyze each wave of market, find a positive law from the fluctuating market, and find an investment strategy that can accommodate market fluctuations. Understand the nature of the market.
First of all, we should choose a regular domestic distributor or its authorized agent service provider to support remote account opening. There are several aspects to consider when choosing a dealer: first, the security of funds and the stability of the platform; Second, whether the deposit and withdrawal are formal; Third, whether it is strictly supervised by regulatory agencies (such as FSA in Britain and NFA in the United States), and whether the inquired regulatory information is consistent with the payee at the time of remittance.
Identify true and false agents
Take TransMarket Group LLC (TMG), an internationally renowned financial company, as an example, and its collection account is TransMarket Group LLC. If there is something different, it may be a fake company. This method can also identify the authenticity of the medicine. Because remittance accounts of foreign exchange companies are often unique.
Recommended TMG platform for foreign exchange account opening
TMG (American International Trading Group), a world-renowned English abbreviation, is the world's largest financial derivatives investment company and dealer authorized and supervised by the US government. TMG's daily investment accounts for more than 5% of the global foreign exchange trading volume, 7% of the global securities and futures market, and 10% of the US Treasury bond market. TMG is also the largest algorithmic trading company in the world, and its key technologies in banking and trading systems are at the world's leading level, representing the most advanced trading technology in the world.
In addition, the calculation method of foreign exchange margin has been added.
Leveraged foreign exchange margin is optional. For an account with 100 USD, the leverage is 100-400 times, and for a standard account exceeding 100, the leverage is 100 times.
Margin required for primary foreign exchange
I.e. monetary value/leverage. 1 hand foreign exchange is mostly RMB 654.38+million, and Japanese yen is RMB 1 million.
The monetary unit here refers to the first place in the currency pair. take for example
Euro/USD, and his monetary unit is 654.38+ million euros.
If the standard hand's pound/dollar is 654.38+ million pounds.
If USD/JPY is USD 654.38 million+as the standard hand.
It means standard hand, that is, changing 6,543,800 euros into corresponding dollars, or buying 6,543,800 euros with equivalent dollars.
Therefore, the deposit of 1 hand is also very easy to calculate. Euro/USD is 654.38+ million euros/leverage is 654.38+000 times, and the margin required for leverage is 654.38+0000 euros, which is 654.38+0350 yuan at today's exchange rate.
USD/JPY is 654.38+ USD million/lever. For example, if you choose 654.38+000 times leverage, the required margin is 654.38+0000 dollars.
Gold and crude oil, their units of 1 hand are 100, 100 ounces and 100 barrels respectively. That is, buying or shorting 100 ounces or 100 barrels of crude oil is a primary transaction.
For margin calculation, the market price/leverage, for example, crude oil is quoted at 100 USD/barrel, and the capital required for 100000 USD/barrel. If you choose 400 times leverage, 10000 USD /400 only needs 250 USD to complete the first-hand transaction.
The net value in trading software is the amount after calculating the profit and loss of the order you are trading. If you don't have any trading orders, it will be as much as your balance.
If you have a list being traded, you make a profit of 1000 yuan, and your net worth is 1 100 yuan. If you lose 1000 dollars, then your net worth is 9000 dollars.
After knowing the net worth, the rest is much easier.
Margin ratio: it is the net value/you are already using the margin. Please refer to the above contents for the margin calculation method.
Note: the amount of margin you use for trading will not affect the net value of your account. The only reason that affects the net value of your account is the profit and loss of the order you are trading.
Available margin: it is the net value minus the used margin. Please refer to the above contents for the margin calculation method.