Leveraged loan is a kind of financing loan provided by banks for personal investment and foreign exchange. In this kind of foreign exchange investment loan, the customer needs to deposit a certain amount of time deposit in the bank, also called "original deposit", as collateral for the customer to borrow funds from the bank. The credit line of the general customer's borrowed funds is 5 to 10 times of the original deposit, and the total loan that the customer withdraws from the bank cannot exceed the credit line granted to him by the bank.

Leveraged trading, as its name implies, is to invest several times the original amount with a small amount of money in order to obtain a return or loss that is several times the fluctuation of the investment target.

Leveraged trading is also called deposit trading. Investors invest several times the original amount with a small amount of money in order to obtain several times the fluctuation of the investment target. Of course, there is also the risk of loss.

Leveraged foreign exchange trading is an important way for investors to conduct foreign exchange trading in the current foreign exchange trading market. Through this trading method, investors will have the opportunity to make big deals with small bets, and their transactions may be more successful. Therefore, investors should understand such trading methods. Many investors want to invest in the foreign exchange trading market and get trading income from such a volatile market. Some lucky investors want to put their small amount of money into the foreign exchange market, so that they can get trading income from the foreign exchange market. Therefore, if investors want to conduct foreign exchange transactions successfully, they must understand foreign exchange leveraged trading. [2]

Assuming that Loco-London gold is $65,438+0,500 per ounce, and the contract value of 65,438+0 lots (65,438+0,000 ounces) is about $65,438+050,000, you can only trade 65,438+0 lots of Loco-London gold with a margin of 65,438.

Leveraged trading is risky because the increase or decrease of margin (a small amount of funds) is out of proportion to the fluctuation of the underlying assets. For example, if you invest in 5 yuan and buy the underlying assets of 100 yuan, if the assets increase by 5 yuan to 105 yuan, then your margin will become 5+5= 10 yuan, that is, the increased 5% will become a profit of 100% through leveraged trading, which is 20 times the leverage. If assets depreciate by 5 yuan and fall by 95 yuan, your margin will become 5-5=0, that is, a 5% decline will become a loss 100% through leveraged trading. Not everyone is suitable for high-risk leveraged trading. But its attraction, besides leverage, is the temptation of short selling.