As for margin trading, the People’s Republic of China stipulates that the State shall not restrict regular international payments and transfers. The provisions of the Regulations shall apply to the foreign exchange receipts and payments or foreign exchange operations of domestic institutions and individuals, and the foreign exchange receipts and payments or foreign exchange operations of overseas institutions and individuals in China.
Foreign exchange margin trading is also called, refers to the signing of a trust investment account with the (designated investment) bank, deposit a sum of funds (margin) as a guarantee, by the (investment) bank (or brokerage) set credit operation limit (that is, 20-400 times the leverage effect, more than 400 times the law).
Investors can be freely traded at sight of the same value within the quota of foreign exchange, the operating profit or loss, caused by automatically deducted from the investment account or deposit, to retail investors can use less money, get a larger size, and has the right to use the global capital as risk aversion, and create profit opportunities in the change.
Say synthetically, fry foreign exchange is an investment behavior.
Foreign exchange margin trading is when investors trade foreign exchange on a trust provided by a bank or broker.
It makes full use of the principle of leveraged investment, a forward way between financial institutions and between financial institutions and investors.
In the trading, investors only need to pay a certain amount of margin to trade up to 100 percent, so that those with a small amount of capital can participate in the financial market for foreign exchange transactions.
(1) The investment target is the national economy, not the performance of the listed company;
(2) Foreign exchange is traded bilaterally and may be bought up or sold down to avoid restrictions thereon;
(3) The trading can be carried out by means of margin and the investment cost is light;
(4) the volume is large, not easy to be controlled by large households;
(5)T+0 transactions, unlimited buying and selling at any time;
(6) be able to grasp the loss range (set stop loss), will not incur greater losses because there is no buyer or seller to undertake;
(7) round-the-clock transactions, which may be conducted at any time;
(8) High rate of return on interest (stocks only pay out a maximum of four dividends per year, while foreign exchange pays interest every day if investors hold high-interest contracts).
A magical scene!
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Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.