For example:
If your account fund is $200, you buy 0. 1 euro/dollar, the $25 you occupy is the deposit, and you still have 175 as the activity fund. When the market price fluctuates downward and loses 175 points, the deposit will be recovered. The system will force you to close your position. (high risk)
If your account fund is $2,000, you buy 0. 1 euro/dollar, the $25 you occupy is the deposit, and you still have 1975 as the activity fund. When the market price fluctuates downwards and loses 1975 points, the deposit will be recovered. The system will force you to close your position. (low risk)
If your account capital is $4,000, you buy 0. 1 euro/dollar, the $25 you occupy is the deposit, and you still have $3,975 as the activity capital. When the market price fluctuates downward and loses 3975 points, the deposit will be recovered. The system will force you to close your position. (minimal risk)
If your account capital is $65,438+00,000, and you buy 0.65,438+0 lots of Euro/USD, the $25 you occupy is the deposit, and you still have $9,975 as the activity capital. When the market price fluctuates downward and loses 9975 points, the deposit will be recovered. The system will force you to close your position. (The risk is almost zero)
This shows that:
1. The more reserve funds in the account, the stronger the ability to resist risks, and the higher the amount of natural profits.
2. investment is like this: risks and benefits are always accompanied. Risk+return = 1, the relationship between this and that. When you put yourself in a high-risk state, the possibility of income is very slim; When you control the risk in a small range, it will satisfy you richly.
Many investors consider how to make money before investing. In fact, in the process of investment, how to control risks is the key. It is difficult to control risks without making money.