1、TCC Forex： How much is the leverage ratioFirst, what is the foreign exchange leverageThe leverage in foreign exchange is equivalent to a tool that can make the contract of the same price scale down the funds. In foreign exchange trading, what we call a foreign exchange leveraged transaction is essen
2、tially a foreign exchange margin trading.As a foreign exchange trading investor, we can choose a leverage ratio of between 20 and 400 times, while the standard contract for the foreign exchange market is $100,000 per lot (base currency, usually the currency pair before the currency), if If you choos
3、e a leverage ratio of 20 times, you will need a $5,000 deposit for the first-hand trade. If the leverage ratio is 100 times, you will need a $1,000 deposit for the first-hand trade.The reason why banks or brokers dare to provide a large proportion of financing is because the average daily volatility
4、 of the foreign exchange market is very small, only about 1%, and the foreign exchange market is a continuous transaction, plus perfect technical means, banks or brokers completely You can use the margins of less investors to withstand market volatility without having to take risks yourself. Forex g
5、uarantee metals are traded in spot, and they have some characteristics of futures trading, such as buying and selling contracts and providing financing, but their positions can be held for a long time until they are actively or forced to close their positions.The advantage of foreign exchange leverage is that we can use less investment money to obtain larger profits, but we need to pay attention to the fact that leverage is two-way. Once the investors foreign exchange transactions are opposite to the market, the loss is followed by leverage.
