Foreign exchange margin trading means that investors use the trust provided by banks or brokers to conduct foreign exchange transactions. It makes full use of the principle of leveraged investment, and it is a long-term foreign exchange transaction between financial institutions and between financial institutions and investors. In the transaction, investors only need to pay a certain margin to conduct the transaction of 100%, so that those investors with small funds can also participate in foreign exchange transactions in the financial market. According to the level of foreign developed countries, the general financing ratio is maintained at more than 10-20 times. In other words, if the financing ratio is 20 times, investors can conduct foreign exchange transactions as long as they pay a deposit of about 5%. That is, investors only need to pay $5,000 to conduct foreign exchange transactions of $65,438+$0,000,000.

For example, when investor A trades foreign exchange margin, the margin ratio is 1%. If investors expect the yen to rise, they can buy the yen with the contract value of 1000×1%through the actual investment of1000. If the exchange rate of the Japanese yen against the US dollar rises by 1%, then investors can make a profit of $654.38 million, and the actual rate of return reaches 100%. However, if the yen falls 1%, investors will lose all their money and all their principal. Generally, when the loss of investors exceeds a certain amount, traders have the right to stop the loss mechanism.

Characteristics and advantages of foreign exchange margin trading

1. The biggest feature of remittance deposit is to use the deposit method, make full use of the leverage principle, and make it small and broad.

2. Foreign exchange margin trading can be operated in both directions, that is, investors can be bullish or bearish, and it is very flexible to operate. The exchange rate of currency will fluctuate within a day. Based on the principle of two-way operation, investors can not only buy at a low price and sell at a high price for profit; You can also sell at a high price and then buy at a low price to make a profit.

These two characteristics are very similar to futures trading.

3.24-hour and T+0 trading mode, that is to say, 24-hour foreign exchange margin trading (except that the global market is closed on weekends). Moreover, the T+0 model also makes investors' transactions very casual and convenient. Investors can enter the foreign exchange market for trading at any time, and investors can change their investment strategies at will.

4. Foreign exchange margin trading has no expiration date, so investors can hold positions indefinitely. Of course, investors must first ensure that there are enough funds in their accounts, otherwise they will face the risk of being forced to close their positions if the amount of funds is insufficient.

5. Investors choose a wide range of currencies when trading foreign exchange margin, and all convertible currencies can become trading varieties.