What is foreign exchange margin? 2021 Foreign Exchange Margin Basic Teaching

　　What is foreign exchange margin?

　　Foreign exchange margin trading is a transaction method that uses the principle of leverage to buy and sell currency pairs through electronic platform transactions.This trading method first started in the 1970s and is one of the most common financial derivatives.

　　In foreign exchange margin trading,investors first need to choose the leverage multiple and margin ratio.After confirming that the above two conditions are good,investors can engage in higher-amount transactions by investing a certain percentage of margin.

　　In today's market,the information,supervision and information of the financial market are gradually being opened up.Through modern financial tools,ordinary investors can also have the same investment opportunities as institutions and"fight"in the foreign exchange market with less capital.

　　Specifically,if Zhang San conducts foreign exchange margin trading,he chooses a leverage of 100 times on the trading platform,and the margin ratio is 1%.When he participates in the transaction with 100 US dollars,because of the magnifying effect of leverage,it is equivalent to financing from the trading platform.The actual profit opportunity of the transaction is 10,000 US dollars.This is the foreign exchange margin system,and it is also the best choice for small funds to gain excess returns..

　　The most common foreign exchange investment is currency pair trading,that is,the price difference is earned by buying and selling between different currencies.From the perspective of investment time,foreign exchange investors can be roughly divided into short-term investors and long-term investors.

　　Short-term investors have a shorter trading cycle and usually earn profits by earning short-term fluctuations in currency pairs,while long-term investors have a longer operating cycle.Margin trading has high volatility and high leverage,and most investors do not have the funds and strength to engage in long-term trading.

　　How to choose a foreign exchange margin trading platform?

　　"If you want to do good things first,you must first sharpen your tools."To engage in foreign exchange margin trading,you must first choose a reliable platform,and choosing a reliable platform generally depends on the following points:

　　1.Whether the platform has relatively strong supervision is the most important condition for selecting a foreign exchange platform.

　　At present,most platforms on the market are regulated by several regulators.Among the regulators,the Australian Securities and Investments Commission and the St.Vincent and the Grenadines FSA are the first,followed by the FCA in the United Kingdom and ASIC in Australia.Only when the main supervision is strong can the newly added offshore supervision be supported,and our transaction funds and transaction risks can be effectively controlled.

　　In addition,there has always been some"noise"in the market,promoting the theory that regulation is useless.Here we must adhere to a basic understanding:regulation is not omnipotent,but without regulation it is absolutely impossible,and a castle built on the beach will be blown away Investors in the"castle"may face tangible losses.

　　2.After making regulatory trade-offs,the next thing we need to pay attention to is transaction costs.

　　Most of the transaction costs include the spread and the handling fee.The regulations of each platform are different.At first glance,the difference is not large,but it cannot be sustained.Especially when the trading volume is relatively large,even if the difference is only two or three dollars,the trading volume of thousands of lots in a month is nearly four or five thousand dollars.A year is hundreds of thousands of RMB,especially in the current market investors are mainly short-term traders,the difference between the slightest may be the key to victory or defeat,and subtle income may also become a source of profit.

　　3.The last thing to pay attention to is the stability of the withdrawal and the service of the platform

　　Because our transactions are all completed on overseas platforms,normal account opening,authentication,withdrawal and deposit are the key factors for stable transactions and profitability.After you have considered regulatory security,transaction costs,and the stability of deposits and withdrawals,the remaining issue is the reputation and service of the platform provider.

　　At present,there are many agencies in this market.After the promotion of agencies,customers'understanding of the market is gradually deepening.They will compare the supervision of the platform and investigate the market reputation.After a comprehensive comparison,the foreign exchange suitable for trading will be The platform can also be determined.

　　At present,the service level of each platform is different.Some have domestic teams,and some are mainly English-language services.The services provided by the platform will greatly affect the fluency and experience of transactions.

　　According to the feedback we have received,investors will face various problems when using trading software and daily transactions,many of which are caused by their lack of understanding of the platform and industry.Some investors will choose platform villains for consultation,but the number of online users is too small,and the consultation service is always busy.

　　Under such circumstances,whether or not to have a dedicated account manager is also an important consideration in choosing a platform.For investors,a stable,efficient and considerate platform may not only be a reliable service provider,but also an investment on the road.Partners,I hope everyone can find a suitable foreign exchange margin trading platform for themselves.