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What is foreign exchange margin trading

by Victor

Trading, also known as speculation, refers to signing a contract with a (designated investment) bank, opening an investment trust account, depositing a sum of money (margin) as security, and having the (investment) bank (or brokerage bank) set a credit operation limit (i.e. 20-400 times the leverage effect, more than 400 times is illegal).

Margin trading is when investors use financing provided by banks, market makers or brokers.

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Generally speaking, the financing ratio is more than 20 times, that is, investors’ money can be magnified 20 times for trading.

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The larger the financing ratio, the less the customer has to pay.

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Investors can within the limit freedom of trade spot exchange, equivalent to the value of profit and loss resulting from the operation will be automatically deducted from the investment account or deposit, make small investors can use less money to obtain larger trading limit, and enjoy the use of foreign exchange, in order to avoid global capital and risk, and create profit opportunities in the change of the strong dollar on gold hit a one-year low,

Fed officials tempered expectations of a 100 basis point rate rise.

Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.

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