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# What are the basics of foreign exchange margin

What are the basics of foreign cashbackforexprofitcalculator margin: foreign exchange margin cashbackforexpipcalculator the investors own funds as a guarantee, from the bank or brokerage firm to provide financing amplification to foreign exchange transactions, that is, amplify the investors trading guarantee funds financing ratio size, generally decided by the bank or brokerage firm, the greater the proportion of financing, the less money the customer needs to pay the assumption that the dealer Provide the margin financing ratio is 100 times, that is, the investor to contribute $1,000 as margin, according to the dealer to the financing to enlarge 100 times you can do 100,000 U.S. cashback forexs in transactions, cashback forex calculator Online the investors maximum loss is$ 1,000, fully to achieve the role of a small gain a successful transaction will allow investors to become rich, and the maximum loss is the initial investment of the principal so in the In the world of all kinds of investment, the most fair and attractive can be regarded as foreign exchange margin trading How to profit The profit of foreign exchange margin trading is * comprehensive analysis of the value of the cashbackforexcalculatorOnline, predict the future trend of currency fluctuations, buying and selling the future trend of the currency investors can not only buy at low prices and sell at high prices in the profit, but also from the high price first sell (short selling), low price and then buy to close the position and profit because of foreign exchange margin trading Pre-purchase and pre-sale features, allowing two-way investment, and there is no specified settlement date, the transaction can be completed in a flash, 24 hours a day can enter and exit the market, you can also change the investment direction strategy at any time, is the most flexible, * investment in this regard it has greater advantages than the stock, do not have to be subject to the so-called bear market can not make money in the restrictions of foreign exchange margin trading specifics 1). Exchange rate method in the international market to do foreign exchange margin trading, mainly to the exchange rate fluctuations to show, the specific performance of the exchange rate is a currency against for example, the pound against the dollar is a currency against, it represents the current market price of the pound is compared with the dollar (I list here to explain how many commonly used currency against) in the display price, to the bit five numbers to show, such as: the euro EUR1.1725 on behalf of the euro against the U.S. dollar is now the price of 1.1725, JPY111.80, AUD0.6884 and so on the exchange rate of the smallest change for the last number (a point) that: EUR0.0001, JPY0.01, AUD0.0001 and so on the currency exchange rate of high and low, not necessarily equal to the currency value of high and low to Exchange rate classification, currency points: direct currency EUR, British pounds GPB, Australian dollar AUD, New Zealand dollar NZD …… direct currency exchange rate is 1 direct currency exchange how much U.S. dollars, such as the Australian dollar AUD0.5280, that is, an Australian dollar to 0.5280 U.S. dollars; EUREUR0.9003, that is, a euro to 0.9003 U.S. dollars Indirect currency Japanese yen JPY, Swiss franc CHF, Canadian dollar CAD…… indirect currency is 1 U.S. dollar to how much indirect currency, such as the yen JPY111.80, that is, 1 U.S. dollar to 111.80 yen; Swiss franc CHF1.6006, that is, 1 U.S. dollar to 1.6006 Swiss franc 2). Exchange rate quotation system Foreign exchange margin to purchase price (DealingRate) to trade, by the bank or broker to set the price of buying and selling at the same time, the customer decided to buy and sell direction to the euro against the dollar, for example, the difference between the price of buying and selling (spread) 3-5 for investors, the smaller the spread, the smaller the cost, the opportunity for profit is also greater 3). Foreign exchange margin trading contract unit Foreign exchange margin trading contract unit, similar to stock trading, are a certain number as a unit (lot / mouth) to trade generally 100,000 yuan for a group (some places are also called lots), to trade and calculate profit and loss