The foreign exchange margin is once again explained! --After reading it is worth
rebateforexfee Forex Rapid Rebate rebateforexbroker process, foreign exchange rebateforex ratio plays a vital role, for just contact speculation foreign exchange entry-level novice, if the foreign exchange margin ratio ForexRapidRebate not well understood, it is easy to lead to account collapse, or receive foreign exchange brokerage company to push the margin call then, today to lead you Know what is foreign exchange margin? Foreign exchange refers to the exchange between foreign exchange currencies [for example: GBP/JPY exchange rate of 120.10 that is, 1 U.S. dollar for 120.10 yen] foreign exchange margin actually refers to the way to occupy the margin for foreign exchange trading general term then as the average daily trading volume of 1.5 trillion U.S. dollars in the market, cashback forex in April 2010 reached a daily trading volume of 4 trillion U.S. dollars in the market The size of the foreign exchange market is 46 times the total global futures market because of this, the foreign exchange market is the worlds largest, the highest liquidity of the financial market compared to the size of other financial markets and trading volume and foreign exchange market comparison, it is a little less! Foreign exchange margin is one of the financial derivatives foreign exchange margin trading initially arose in the 80s in London now foreign exchange margin is the investor with their own funds as a guarantee, from the bank or brokerage firm to provide financing to enlarge to foreign exchange transactions, that is, to enlarge the investors trading guarantee funds so foreign exchange margin is also known as leveraged foreign exchange for example: investor A for foreign exchange margin trading, margin ratio of 1% If the investor expects the yen will rise, then the actual investment of 100,000 U.S. dollars (10001%) of the margin, you can buy the contract value of 10 million U.S. dollars of yen when the dollar against the dollar exchange rate rose 1%, then the investor will be able to profit 100,000 U.S. dollars, the actual rate of return reached 100%, the full effect of a small gain but if the yen fell 1%, then the investor will lose everything. Then the investor will lose everything, the principal invested will be lost generally when the investors loss exceeds a certain amount, the dealer has the right to stop the loss mechanism foreign exchange margin advantages and advantages: (1) 24 hours and T + 0 trading mode: foreign exchange margin trading can be carried out 24 hours a day (except for the weekend global market closure) and coupled with the T + 0 mode also makes the investors trading Become very casual and convenient investors can enter the foreign exchange market at any one time to buy and sell, investors can freely enter and exit the market to change investment strategies (2) two-way trading: investors can both bullish and bearish, so that the currency exchange rate in a day will have certain ups and downs, based on the principle of two-way operation, investors can not only buy at a low price, sell at a high price to profit; can also be at a high price First sell, then buy at low prices and profit these two characteristics and futures trading is very similar (3) high liquidity: foreign exchange market daily trillions of dollars of turnover, to ensure that the market at any time there are prices, ready to deal and not easy to be artificially manipulated prices (4) leverage: this is the biggest difference with the real foreign exchange, because investors can use leverage to dealers or bank financing, making their own Can use a small amount of money to participate in the foreign exchange market (5) investors to foreign exchange margin trading when the choice of currency variety, all convertible currencies can become trading varieties but everything is not perfect, its advantages and disadvantages! It is worth reminding investors that: for investors who do not understand the risks involved, should be careful to choose this investment channel if foreign exchange margin trading, but also to thoroughly understand the risks involved, because now there is no domestic regulation, and in the gray area investors must choose the formal trading platform for trading foreign exchange margin trading requires sufficient funds, sufficient time, a strong trend The companys main goal is to provide the best possible service to its customers.