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Margin of BTC leverage

Publish: 2021-04-09 21:31:58
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2. It is suggested that you do not transfer margin. You should know that there is no formal virtual digital currency trading platform in China. For your capital security, please choose the investment mode carefully.
3. Leverage trading, as the name suggests, is to use a small amount of funds to invest several times the original amount, in order to expect to obtain multiple returns or losses relative to the fluctuation of the investment object. As the increase or decrease of margin (the small amount of funds) does not move according to the fluctuation ratio of the underlying assets, the risk is very high
the international financing multiple or leverage ratio is between 20 times and 400 times. The standard contract in the foreign exchange market is RMB 100000 per hand (which refers to the base currency, that is, the currency before the currency pair). If the leverage ratio provided by the broker is 20 times, it will cost RMB 5000 to buy and sell (if the currency of the transaction is different from that of the account guarantee gold coin, It is necessary to convert the amount of deposit; If the leverage ratio is 100 times, a margin of 1000 yuan is required for the transaction. The reason why banks or brokers dare to provide a larger proportion of financing is that the daily average fluctuation of the foreign exchange market is very small, only about 1%, and the foreign exchange market is continuous trading. With perfect technical means, banks or brokers can completely use less margin of investors to resist market fluctuations without having to bear their own risks. Foreign exchange guarantee metal is used for spot trading, and has some characteristics of futures trading, such as trading contract and providing financing, but its position can be held for a long time until it is voluntarily or compulsorily closed.
4. In foreign exchange margin trading, leverage ratio is a very important concept, which is also the attraction of foreign exchange compared with stocks. You only need a small amount of money to trade through leverage. This makes your money more efficient

let's give an example to illustrate the concept of leverage. Take the first-hand GDP / USD (1.6000 / 1.6003) as an example. In fact, holding 100000 GDP depends on selling 1600300 USD, while the customer does not need to sell 1600300 USD. According to the 100 times magnification, only 1600300 USD / 100 = 16000 is required to be mortgaged. Take buying a hand of USD / JPY (108.00 / 108.03) as an example. In fact, holding 100000 USD depends on selling 10.803 million JPY, while the customer does not need to really sell 10.803 million JPY (equivalent to 100000 USD). According to the 200 times magnification, he only needs to mortgage 100000 / 200 = 500 USD

now you may understand the concept of leverage. The higher the leverage ratio is, the less margin will be used to hold the same position; On the contrary, the lower the leverage ratio, the more margin the same position will occupy. The general standard account can choose the leverage ratio between 25 times and 400 times.
5. 1 leverage:
if the leverage is large, you need less margin, and the remaining margin against risk is relatively large.

for example, take the account capital of $6000, buy a euro / dollar drop as an example (a point of $10):

1:20 leverage: take up $5000, and there is $1000 active in the account, which can resist 100 points of risk, When the market price fluctuates upward and loses 100 points, the system will force you to close the position when margin is recovered Great risk)

1:100 leverage: it takes up $1000 of capital, and there is $5000 active in the account, which can resist the risk of 500 points. When the market price fluctuates upward and the loss is 500 points, the margin will be recovered, and the system will force you to close the position General risk)

1:400 leverage: the occupied capital is 250 US dollars, and there is 5750 US dollars active in the account, which can resist the risk of 575 points. When the market price fluctuates upward and the loss is 575 points, the system will force you to close the position when the margin is recovered Compared with 1:20 and 1:100 leverage, the risk is small)

above, we can draw the conclusion that under the condition of the same amount of funds in the account and the same number of hands (one contract is called one hand), the higher the leverage ratio, the smaller the risk

however, if the customer uses a certain amount of margin to trade the number of hands, it will appear in the case of occupying a certain amount of margin. The greater the leverage, the more hands the transaction will be, and the greater the risk will be.

to sum up, we can see that leverage is a tool used by customers to trade, and the real risk lies in the customers' trading psychology

2 margin:
for the conversion of margin, we should first understand that 1 standard hand is equal to 10 Mini hand (0.1 hand) and 100 Mini hand (0.01 hand). In the standard hand, the fluctuation of one point is $10, the fluctuation of one point in the mini hand is $1, and the fluctuation of one point in the micro mini hand is $0.1
1; In terms of 100, the margin required to make a standard hand is 1000 US dollars in the United States, Japan, Australia, the United States, Switzerland, the United States, Canada, Europe, the United Kingdom and China
the margin required to make a standard other currency pair is (100000 / 100) * exchange rate If the Euro American exchange rate is 1.4155, the euro Swiss exchange rate is 1.5967, the British Swiss exchange rate is 1.9885, and the euro Australian exchange rate is 1.7532, then:
the Euro American exchange rate needs 1415.5 US dollars, the euro Swiss exchange rate is 1596.7 US dollars, the British Swiss Exchange rate is 1988.5 US dollars, and the euro Australian exchange rate is 1753.2 US dollars, The margin is US $1519.7
the UK Japan exchange rate is 189.29 and the margin is US $1892.9

this is based on the standard hand conversion. The deposit of mini hand is 1 / 10 of the above data. The deposit of Micro Mini hand is 1 / 100 of the above data

if the leverage of 1:500 is used to calculate, the amount of margin is 1 / 5 of the above amount. Therefore, it is more appropriate to choose the larger leverage. For example, the US and Japan use $1000 margin in 1:100, and only $200 margin in 1:500. The fluctuation is also $10, but the capital occupied is much less.
6. In investment, the so-called leverage refers to the use of fixed interest rate funds in the capital structure to improve the return on investment of common stock. The buyer's own investment is small, but it may get higher profits or larger losses, and its leverage is larger< There are three types of leveraged stock:

one is the stock purchased by cash margin trading

the second is the stock purchased by means of equity margin

the third is the stock purchased by legal margin. There are many factors affecting margin. This is because in the process of trading, e to the different nature of various securities, different denominations, different supply and demand, customers have to change with the change of factors when paying margin<

extended information

the role of leverage in stock speculation is to enlarge the capital for stock speculation. For example, if you only have 200000 principal in hand, you can add four times of leverage to have an account of 800000. Of course, the additional leverage will require additional "borrowing" costs.
7. There is a close relationship between foreign exchange leverage and margin. The greater the leverage, the less margin used in the exchange. Leverage is the multiple of the margin used. For example, the current price of euro / US dollar is 1.2945, and one hand is 100000 contract. If there is no leverage (that is, 1:1), the transaction can only be completed with 129450 US dollars (1.2945 * 100000). If the leverage is 1:100, the transaction can be completed with 1294.5 US dollars of margin, which is 100 times smaller.
8. In foreign exchange trading, the initial contact for investors is foreign exchange leverage and margin. The common foreign exchange leverage are 100 times, 200 times and 400 times leverage, while the foreign exchange margin platforms and procts are different. Foreign exchange leverage and margin are directly related to the profit and loss of foreign exchange transactions...
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