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Basic characteristics of foreign exchange derivatives
The basic characteristics of foreign exchange derivatives trading are: margin trading, that is, as long as a certain percentage of margin is paid, the full amount can be traded without actual principal transfer. Contracts are generally terminated by price difference settlement, and only contracts performed by physical delivery on the due date require the buyer to pay the full payment.

Therefore, the trading of financial derivatives has leverage effect. The lower the margin, the greater the leverage effect and the greater the risk.