Trading makes full use of the principle of leveraged investment, a forward way between financial institutions and financial institutions and investors.
In trading, investors only need to pay a certain amount of margin to make 100 percent of the trade, so that those with a small amount of money can also participate 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 funding ratio is 20 times, investors can trade as long as they need to put up a margin of about 5 per cent.
For example, Investor A trades on foreign exchange margin with a margin ratio of 1%.
If the investor expects an appreciation and the actual investment is 100,000 (100 x 1 percent), he can buy yen with a contract value of 10 million dollars.
A 1 per cent gain on the day would give investors $100,000, a real return of 100 per cent.
However, if the yen falls 1 per cent, investors will lose all their money and principal.
