3 thoughts on “How to deal with the problem of leverage in foreign exchange margin transactions?”
Melody
First of all, the concept of 2%is wrong. Foreign exchange is generally calculated in points. For example, there are $ 10,000 in your account. Regardless of the leverage ratio, you place an order to occupy a deposit of 500 US dollars (the security deposit is only occupied), no matter how much the system falls, it will always occupy a deposit of $ 500. For example, if you have fallen 1,000 US dollars, the system still occupies a deposit of $ 500. It is just that the money you can use in your account has changed from 9500 (because the deposit occupies $ 500) to $ 8,500. Until the amount of money in your account is not enough, the system will automatically close your single position. The leverage ratio does not affect risks. The leverage ratio refers to the amount of margin you need. If you have two 10,000 US dollars accounts. At this time, there are two leverage ratios, one 1: 100, and the other 1: 200. Your two accounts are at the same time with standards of European and American currencies (EURUSD). The account of 1: 100 will take up your $ 1,000 deposit. 1: 200 accounts will occupy a deposit of $ 500. But they are all standard hands, no matter how they fluctuate their risks and benefits the same. Therefore, the risk is not related to the proportion of leverage, and it depends on how many hands you have.
Your concept is completely wrong. The leverage ratio is agreed in advance, it is a fixed number. It is the deposit you need to pay for each hand ($ 100,000). For example, if you have a 100 -fold leverage, you need $ 1,000 in your transaction (short or more); you need $ 500 if you trades (short or more); and so on. The larger the leverage, the greater the number of hands you can make, the greater the profit (or loss) of the profit (or loss), and the higher the risk you can. The degree of losses is calculated according to your funds other than your security deposit. If you have 10,000 US dollars in your account, a certain variety of selling a $ 2,000 deposit, when the deposit (8,000 US dollars) will lose money, then you will have a position, and the remaining $ 2,000 deposit is left.
The leverage is a double -edged sword. There is a certain relationship between the leverage and the risk; if the platform leverage you trades is 20: 1, then every one -handed transaction takes up one -fifth of the net value. At a critical time Warehouse, of course, this is not very important; the important thing is the position of the position. The risk lies in the size of the position. The heavy position is not easy to control the risk. At the same time, it is easy to make you lose a rational judgment. The deposit is just a form. The more the transaction list you hold, the greater the risk. I want to say what the friend above, mainly how many hands you have.
First of all, the concept of 2%is wrong. Foreign exchange is generally calculated in points.
For example, there are $ 10,000 in your account. Regardless of the leverage ratio, you place an order to occupy a deposit of 500 US dollars (the security deposit is only occupied), no matter how much the system falls, it will always occupy a deposit of $ 500. For example, if you have fallen 1,000 US dollars, the system still occupies a deposit of $ 500. It is just that the money you can use in your account has changed from 9500 (because the deposit occupies $ 500) to $ 8,500. Until the amount of money in your account is not enough, the system will automatically close your single position.
The leverage ratio does not affect risks. The leverage ratio refers to the amount of margin you need. If you have two 10,000 US dollars accounts. At this time, there are two leverage ratios, one 1: 100, and the other 1: 200. Your two accounts are at the same time with standards of European and American currencies (EURUSD). The account of 1: 100 will take up your $ 1,000 deposit. 1: 200 accounts will occupy a deposit of $ 500. But they are all standard hands, no matter how they fluctuate their risks and benefits the same. Therefore, the risk is not related to the proportion of leverage, and it depends on how many hands you have.
Your concept is completely wrong.
The leverage ratio is agreed in advance, it is a fixed number. It is the deposit you need to pay for each hand ($ 100,000). For example, if you have a 100 -fold leverage, you need $ 1,000 in your transaction (short or more); you need $ 500 if you trades (short or more); and so on. The larger the leverage, the greater the number of hands you can make, the greater the profit (or loss) of the profit (or loss), and the higher the risk you can.
The degree of losses is calculated according to your funds other than your security deposit. If you have 10,000 US dollars in your account, a certain variety of selling a $ 2,000 deposit, when the deposit (8,000 US dollars) will lose money, then you will have a position, and the remaining $ 2,000 deposit is left.
The leverage is a double -edged sword. There is a certain relationship between the leverage and the risk; if the platform leverage you trades is 20: 1, then every one -handed transaction takes up one -fifth of the net value. At a critical time Warehouse, of course, this is not very important; the important thing is the position of the position. The risk lies in the size of the position. The heavy position is not easy to control the risk. At the same time, it is easy to make you lose a rational judgment. The deposit is just a form. The more the transaction list you hold, the greater the risk. I want to say what the friend above, mainly how many hands you have.