What Best forex trade cashback the mean bestcashbackprogramsforexg of leverage? The leverage effect is a relatively important concept when speculating in foreign cashback forex, is also a common term for speculating in foreign exchange margin Today, the author for you to fully reveal the leverage effect is the original mechanism of futures forexbrokercashback, that is, the margin system leverage effect allows investors to trade the amount of money is magnified at the same time, but also make investors bear the risk of increasing many times For example, suppose a trader a sum of 50,000 yuan of funds for stock or spot trading, the traders risk is only worth 50,000 yuan of stocks or goods brought. If the entire amount of 50,000 yuan is used for stock Bestforextradecashback futures trading, the risk borne by the trader is about 500,000 yuan worth of stocks or goods, which magnifies the risk by about ten times, and of course, the corresponding profit is also magnified by ten times. The leverage of stock index futures is prying blue chips before the stock index futures were listed, the index rose; after the stock index futures were listed, the index fell; but the long-term trend of the index will not change The current Chinese stock index futures are undergoing the index rising stage before the stock index futures were listed. The first is September 12, 2006, the management said to launch stock index futures as soon as possible, the same day the Shanghai Composite Index rose 20.89 points, or 1.25%; the second is September 15, the management said that the future will steadily develop the financial derivatives market, the same day the Shanghai Composite Index rose 31.36 points, or 1.86%, and a breakthrough resistance level The third is October 24, the news of the launch of stock index futures trading early next year was announced, the Shanghai Composite Index rose 45.79 points, or 2.60%, and easily broke through the important resistance level of 1800 points. The reason why stock index futures were listed before the wave of blue chips in Shanghai and Shenzhen stock market, mainly because of the increase in holdings of blue chips by institutional investors, although the traditional financial theory Although traditional finance theory holds that stock index futures will not ultimately affect traders decisions to buy and sell stocks, the actual performance shows that since the underlying index is dominated by blue chips, the imminent listing of stock index futures has increased the scarcity of these blue chips, thus triggering a liquidity premium for the basket of chips before the listing. Leveraged foreign exchange trading: a highly dangerous money game Leveraged foreign exchange trading is quite common in China, traders pay only 1% to 10% of the margin, you can make 10 to 100 times the amount of transactions or even as low as 0.5% of the margin to make up to 200 times the amount of transactions due to leveraged foreign exchange trading on the investors capital requirements are very low, can be indefinite Hold a position; coupled with flexible trading methods, attracting many investors because of the Asian market, the European market, the American market because of the time difference, even into a 24-hour continuous operation of the global foreign exchange market no matter where the investor himself, he can participate in any market, any time trading, the foreign exchange market is a market without time and space barriers Leveraged foreign exchange trading looks like a small profit On the other hand, the international foreign exchange market daily turnover can reach more than 1 trillion U.S. dollars, many international financial institutions and funds involved in which countries economies Policy changes at any time, a variety of unexpected events occur from time to time, these may become the cause of large fluctuations in exchange rates large institutions employ a large number of human resources, from a variety of channels to obtain first-hand information, the investment team real-time use of analysis of the results of buying and selling profit Leveraged foreign exchange trading margin amount is small, but the actual use of funds is very large, and the daily volatility of foreign exchange prices and great, if investors in If an investor makes a mistake in judging the foreign exchange trend, it is easy to lose all the money Once you encounter unexpected market conditions and did not take timely measures, not only all the capital lost, but also may have to call the difference each investor must not take it lightly in deciding the leverage multiplier, must understand the risks involved Leverage effect of gold margin trading margin trading is to the economic strength of the brokerage company as a guarantee, investors should pay attention to prevent Risk leverage trading magnified 30 times bullish short are profitable industry experts said: gold staple trading provides Au100, Au10 two trading varieties in the transaction, Zhejiang gold products is a market maker as long as someone put forward an offer, the company will sell gold to the bidder gold prices rose, if someone again bid, gold can be traded again, but also can be repurchased to Zhejiang gold products investors can be in Zhejiang Gold products in Chinas commemorative coin trading network on the web page of direct transactions, by the company for the aggregation of traders can also take physical gold, but must make up the difference in gold in addition to the prepayment USD / ounce purchase of 100 ounces of gold contracts (trading orders), the third day of the offer is $ 400 / ounce, half a month later, to $ 405 / ounce sold this transaction per ounce of profit is $ 9, 100 Ounce is $900, converted into RMB is $900 8.1046 = 7294.14 yuan (yesterdays RMB exchange rate closed 1 U.S. dollars to 8.1046 yuan) Industry insiders believe that margin trading is the economic strength of the brokerage company as a guarantee, if the price of gold fell sharply, and the brokerage companys capital can not offset the decline in gold prices, the investors principal will The majority of the international gold margin trading is provided by the subsidiaries of large financial enterprises, few small enterprises dare to take the risk to get involved in it Therefore, investors should pay attention to prevent the risks involved Since it is margin trading, there is a risk of being forced to close the position Mr. Ying said: If the market falls more than 50% of the amount of the margin, the company will require customers to cover the margin; if not, the margin loss exceeds 50% of the amount of the margin. If not, the position will be closed when the margin loss exceeds 90% After reading the authors introduction, do you know what the leverage effect means? When you are trading in foreign exchange, try hard to master this knowledge, as long as you are willing to learn, I believe you will get a great victory in investment!
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