To understand foreign exchange margin transactions, we must first understand what foreign exchange transactions are.There are many types of foreign exchange transactions, including futures foreign exchange transactions, long -term foreign exchange transactions, foreign exchange futures, foreign exchange swaps, foreign exchange options, foreign exchange margin transactions, etc.
Today we mainly talk about foreign exchange margin transactions with a low threshold and a high popularity.
What we usually call foreign exchange margin transactions is a foreign exchange financial derivative.The so -called margin transaction refers to the full funds that investors do not need to pay the value of the contract. They only need to pay a certain percentage of margin to trade (that is, the so -called leverage transaction)
The above concepts may sound abstract. Let's give it an example:
We use banks to settle and sell foreign exchange to analogy. Assuming that small A needs to go to the bank to exchange $ 10,000. If the exchange rate of the bank US dollar/RMB at this moment is 6.3745, then the small A needs to spend 637.45 million yuan to exchange for $ 10,000. This is not notLeverage, 1: 1 foreign exchange transaction.
However, in the case of foreign exchange margin transactions, if the leverage is 100: 1, the transaction is $ 10,000, it only costs $ 100, that is, the leverage of 100 leveraged 10,000 funds. In foreign exchange margin transactions, we usually we usually doEquate 1 hand to 100,000 contracts.So why use the form of a deposit for foreign exchange transactions?
In fact, the internal reasons are that the daily fluctuations of foreign exchange are too small. We know that the reason why a currency can become a legal currency and the stable currency is one of the most basic elements. This is also many economists.Currency cannot act as one of the important basis for legal currencies.
It is precisely because the foreign exchange fluctuation rate is too small, and under the non -special market, the day often fluctuates around 100 points, that is, 1%.Any attractiveness, only by adding leverage to amplify the yield, foreign exchange transactions have certain investment.
So, how should the security deposit be calculated?There is a formula here:
The required margin = the number of contracts*the number of transactions*the price/leverage of the currency pair
We take the US dollar as an example. Assuming that the lever is set to 100, the price of GBP/USD is 1.3284/87, buy 1 hand, the deposit used = 100000*1*1.3284/100, equal to $ 1328.4.
At the same time, the foreign exchange market has the following characteristics:
Foreign exchange margin transactions are different from futures. Without the expiration date of the delivery date, the T+0 system can be cleared at any time on the non -closed day, or the position can be held indefinitely.
The foreign exchange margin trading market is large. According to statistics from international settlement banks, foreign exchange and daily transactions reached 5 trillion yuan. The huge transaction volume means that no institution can control the market.
Foreign exchange transactions are rich in currency, and international convertible currencies can basically be used as transaction varieties.
The foreign exchange deposit trading time is 24 hours.
Can be traded in both directions and can be short and short.
The investment threshold is low, the lower funds can be opened and the transaction can be opened.
It can be seen from the above characteristics that foreign exchange transactions and stocks and futures are different.
