How is the foreign exchange margin ratio calculated? Foreign

In the process of foreign exchange trading, the foreign exchange margin ratio plays a crucial role. For newcomers who are new to the entry level of foreign exchange, if the proportion of foreign exchange margin is not understood, it will easily lead to account explosion, or receive a foreign exchange brokerage company. Call the deposit. Foreign exchange margin, in simple terms, refers to the foreign exchange earners using their own funds as a guarantee, from the foreign exchange brokerage companies to obtain greater financing for foreign exchange transactions, which is to enlarge the investment funds of the foreign exchange earners. Of course, this is not an unrestricted enlargement. There is an appropriate ratio. This is the foreign exchange margin ratio. What is the general foreign exchange margin ratio? How is it calculated? What is the foreign exchange margin ratio? (1) Foreign exchange margin ratio = net value / Used margin (2) where net value = account balance + floating profit and loss (3) account balance = account balance since the last liquidation; (4) used margin: holding all the sum of the margins used for closing positions; (5) Available Margin: Net Value - Used Margin. When the account foreign exchange margin ratio is less than 100%, the system will automatically forcibly close the position, commonly known as the storm. To give an example: (using the most commonly used 200 times margin account to illustrate) Assume that there is now 2,000 US dollars on the account, and 1 US dollar is used, which occupies 500 US dollars. If you just don't make a profit, the margin ratio is 2000/500=400%. One hand, the US and Japan, fluctuate by one point, about 9 US dollars. That is to say, if the field is running in a direction that is good for you, you will earn about 9 dollars. If you run a point in the direction that is not good for you, you will Lose or earn less than $9. So: On the one hand, on the spot, 222 points in the direction that is good for you, the account will double; on the other hand, on the spot, running in a direction that is not good for you, when the floating net value is close to 500 US dollars, the margin ratio is close to 100%. When the margin ratio is less than 100%, it is forcibly closed. Therefore, you have 1500 US dollars to allow you to bear the risk of field fluctuations before the storm, 1500/9 = 166.67 points. In other words, when you use a quarter of a warehouse to make a US and Japan, running around 166 points may make you a bargain. For another example, if you trade 0.2 US dollars for a $2,000 trading account, it will take 100 US dollars of margin, which is 5% of the position, and the margin ratio is 2000/100=2000%. When the floating loss reached $1900, the floating net worth was close to 100 and the margin ratio was close to 100%. For 0.2 hands, a point value is about 1.8 dollars, 1900/1.8=1055.56 points, that is to say, if the 5% of the positions are not only the loss of the US and Japan, the account can withstand a maximum of 1055 points before the storm. In addition, after the storm, there is no penny on the account, and there is a net value on the account. If it is a 1 hand storm, it is a time when the net value is slightly lower than 500, so there will always be about 499 dollars on the account. If you do 0.2 hand storm, then there is only about $99 left on the account. Therefore, heavy positions are prone to violence, but there is more money left after the storm. A light warehouse is not easy to violent. Once it is violent, the money will be kept less.