Alyssa Hertig
Oct 25, 2021 13:27
Margin Trade
Investors trade with the leverage provided by the broker platform.
The larger proportion of leverage, the less money customers need to pay.
For example, the minimum required margin is 1% of asset, the leverage is 100:1, that means for every $1 in your account, you have $100 to trade.
investors need only $100 to trade up to $10,000. So that investors with less money can also participate in financial markets.
For example, the Euro's dollar margin ratio is 0.5%, the leverage is 200:1. if you expect the Euro to rise, investing $10,00, multiplied by 200 leverage, you can buy a Euro of $200,000. when the price of the Euro rises by 1% and the real gain expands by 200 times to 200% as to $20,00.
margin trading has advantages and risks, learning basic knowledge, mastering trading methods is still important. You can see “Risk Management and Position Size” in master skills on our platform.
Spread
At the time of trading, there is a difference between the buy price and the sell price, that is called Spread. For example: Gold (AUXUSD) quoted the Sell price is 1640.00, and the Buy price is 1640.45, 1640.45-1640.00=0.45 is called 45 spread.
spread is the cost to investors when trading investments, and the lower the spread, the bigger the profit margin for day-trading& short-term traders. Our platform is extremely competitive by providing ultra-low spread for investors.
Forced liquidation
Forced liquidation refers to the platform to mandatory close part or all of your positions. When the trading margin is insufficient, the platform forced close some or all of the positions to avoid the loss amount exceeding the minimum requirement.
Our platform requires investors to have a margin account with no less than 50% of the funds available and no less than 100% over the weekend. Avoid sharp market fluctuations, losses over investment funds.
Investors should increase the margin in time, do a good job of risk control, set stop loss and timely profit exit, to avoid the emergence of forced liquidation.
As long as the position is still in, there is a chance to profit exit from the market!
Oct 25, 2021 13:27
Oct 25, 2021 13:27