leveraged trading, also known as virtual trading , deposit transactions.That investors use their own funds as a guarantee, financing from a bank or broker at providing amplification for foreign exchange transactions, which is magnified investors investment funds.Noahark LIMITED provided 1:50 to 1:500 leverage transactions.

in the foreign exchange margin trading (also known as leveraged foreign exchange trading), in essence is engaged in the sale and purchase agreement.

 

First, the international foreign exchange quotes are five digits, with regard to the euro for example, the euro /dollar 1.2800, which represents one euro can be exchanged for 1.2800 dollars.When the euro from 1.2800 to 1.2801 or 1.2799 fluctuations, fluctuations 0.0001, which is called a point.

 

Second, in the international traffic is basically this:a standard contracts worth 100,000 dollars (100,000 dollars), a mini contract worth 10,000 dollars (10,000 dollars).How much is a point worth it? Take what is the strategy! $ 100,000 * 0.0001=10 dollars, 10,000 dollars * 0.0001=$ 1.So whether for a:100 leverage or 1:400 leverage, a point of a standard contract is 10 dollars, a point a Zhangmi your contract is $ 1.

 

Third, this 100 000/100 times=1000 dollars, 100,000 /400 times=250 dollars, that is to do a standard contract, if it is 1:100 leverage, you need to use the funds in the account $ 1000, if it is 1:400 leverage, you need to use the funds in the account $ 250.

 

if your account funds $ 200, you buy 0.1 lot EUR /USD up , is occupied by your $ 25 deposit, you are still $ 175 is active funds, when the market price fluctuation losses down 175 points, the occurrence of margin calls.Your system will be forced to open.

 

 

 

if your account funds $ 2,000, you buy 0.1 lot EUR /USD up , is occupied by your $ 25 deposit, you are still $ 1,975 is active funds, when the market price fluctuation loss 1975 points downward, the occurrence of margin calls.You will be forced to open.

 

if your account funds $ 4,000, you buy 0.1 lot EUR /USD up , is occupied by your $ 25 deposit, you are still $ 3,975 is active funds, fluctuations in losses when the market price down to 3975 points, the occurrence of margin calls.System will be mandatory for you to open.

 

if your account funds $ 10,000, you buy 0.1 lot EUR /USD up , is occupied by your $ 25 deposit, you are still $ 9,975 is active funds, fluctuations in losses when the market price down to 9975 points, the occurrence of margin calls.System will be mandatory for you to open.

 

of course, there is a problem needs attention, and that is different Forex Trading platform are using leverage ratio is different.Good Forex traders leverage ratio is very reasonable.

 

in addition to the position of control, foreign exchange margin trading should also take into account other transactions factor, especially when investors are feeling poor state of their own, even if the stock market is no better nor recommend investors to force the transaction.