Also called trading, through signing a contract with the bank, open a trust investment account, deposit a sum of money (margin) as a guarantee, by the bank (or brokerage) set credit operation limit (that is, 20-400 times the leverage effect, more than 400 times is illegal).
Bets are made by investors with financing from banks, market makers or brokers.
Speculation foreign exchange general financing ratio is in 20 times above, that is, the capital can be enlarged 20 times to trade.
The larger the proportion of financing, the less money customers need to pay, making full use of the leverage of small bets.
One of the most attractive features of forex speculation, apart from the amplification of funds, is that it can work both ways, by buying on the upside (going long) and selling on the downside (going short), without the constraints that are so called impossible to operate in a bear market.
