Digital currency with 400 times leverage

You need to go up 100% to get 4 million, and you can only go up 10% to get 400000

leverage trading, which is to use small amount of funds to invest several times the original amount. In order to obtain the relative investment object volatility multiple yield, or loss. Because the increase or decrease of margin (this small amount of funds) does not move according to the fluctuation ratio of underlying assets, the risk is very high

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for example, if an investor wants to buy n-hand euro in a certain position between Euro and US dollar, if his signing multiple is 20 times, the calculation method of margin he uses is:

margin = n × Amount of each contract multiplied by or divided by opening price (current exchange rate) × Specifically, if someone wants to buy five hands of euro at 1.4500, the margin used is:

5 × 100000 (Euro) × one point four five zero zero × 5% = 36250 (US dollars)

if the euro rises to 1.4600 against the US dollar in the following period of time, then the competitor's profit is:

profit = 5 × 100000 (Euro) × 4600-1.4500) = 5000 (US dollars)

in terms of profit ratio, if a trader uses a firm offer to buy the euro with us $725000 at 1.45, when it rises to 1.46, he can make a profit of 5000 yuan, or 0.69%, while the profit of margin is 5000 yuan ÷ thirty-six thousand two hundred and fifty × 100%=13.79%

in the actual operation process, you may not be able to make a profit on the day when you buy a currency. If you do not close the position before 2 a.m. the next day, you need to calculate the interest income or expenditure on the currency in the trading account, and the interest rate is based on the international interbank lending rate (from 360 days)

although the profit from the same fluctuation is far more than that from the firm offer, the high profit is undoubtedly accompanied by high risk. If the investor's market entry point is slightly deviated, it may bring huge losses. Therefore, in margin trading, traders should first consider the risk, especially for novices, profit is the second thing

1. for example, a standard warehouse is 10W, if you trade 1W, you can fully bear the profit and loss brought by the price fluctuation of a warehouse (10W). That's 10 times leverage

2. If 0.5W can be traded, it is 20 times. 0.1W is 100 times. Three or five times is actually very difficult. There are too few leverage. Generally, about 50-100 will give consideration to both safety and income

3. the greater the leverage, the greater the available funds and the greater the risk, of course, the greater the better. However, we should not place too many orders and avoid heavy foreign exchange positions

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foreign exchange is the creditor's right that can be used in the event of balance of payments deficit held by monetary administration authorities (Central bank, monetary administration, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds of Ministry of finance, long-term and short-term government securities

including foreign currency, foreign currency deposits, foreign currency securities (government bonds, treasury bonds, corporate bonds, stocks, etc.), foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.)

as of 2015, China ranked first in the world in terms of foreign exchange reserves. But the United States, Japan, Germany and other state-owned private foreign exchange reserves, the country's overall foreign exchange reserves are much higher than China

foreign exchange network

This kind of currency is not suddenly on fire, and for this kind of thing, many capitalists have made corresponding investment, and for the most well-known Elon Musk, he also has a special preference for dog money{ RRRRR}

so for most people, they choose this kind of digital currency at this time in order to avoid all kinds of negative effects brought by the loose monetary and fiscal policies of most countries last year. This is also an important reason for the rise of this kind of currency this year, and for this kind of currency, The essence of bitcoin is the same as that of bitcoin, which is well known to us. However, for the current bitcoin, its price is very high and its price is very high. Therefore, for most ordinary investors, they don't have much assets to invest in bitcoin, so they will turn to other digital currencies, For digital currencies such as doggy money, it is just issued, so it has more room for appreciation, which is also an important reason why most people favor it