FX is the use of leveraged investment theory, financial institutions and between financial institutions and investors of a foreign exchange trading. In the transaction, the transaction will only pay one percent - 10 percent of the margin, can amount to 100 percent of the transaction. Each makes a small amount of investors in financial markets can also be traded in foreign currencies.
An example, Mr. Zhao to be done today, the equivalent of 100,000 U.S. dollars deal, through margin trading, assuming a ratio of one percent margin (1:100), Mr. Zhao should have only 1% * 100,000 = 1000 U.S. dollars. Will be able to carry out this transaction. In other words with 1,000 yuan of funds, to 100,000 yuan in foreign exchange transactions, capital transactions expanded by 100 times. Therefore, if investment 10,000 U.S. dollars, both in the 1 million U.S. dollars of transactions.
However, when the investment transaction losses below a certain limit, chambers of commerce transactions require investors to deposit additional initial position. If the amount of margin trading for less than a certain percentage, dealers have the right to open the implementation of the mandatory action.
forex trade deposit system
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