US$40000 (how much US$40000)

Foreign exchange speculation is also known as foreign exchange margin trading and belongs to the leveraged trading model. When investors open accounts for speculation in foreign exchange, they need to choose the leverage for speculation in foreign exchange. The size of the leverage will also have a certain impact on the investor's future foreign exchange speculation operations. So how appropriate is the leverage to speculate on foreign exchange$40,000？The following editor will introduce the method of selecting leverage for foreign exchange speculation.

How much leverage is appropriate to speculate on foreign exchange? When investing in foreign exchange, there are mainly 100 times, 200 times and 400 times leverage options for investors to choose from. Under the leveraged model, investors can amplify their funds by a corresponding multiple to trade. For example, if investors have US$100 under the 400-fold leverage model, they can control US$40,000 to trade. Then does this mean that the greater the leverage, the better?

The amount of leverage in foreign exchange speculation has nothing to do with the investor's profits, it is only related to the amount of margin. When speculating in foreign exchange, margin is actually a reflection of leverage, and leverage and margin complement each other. If the amount of open positions is the same, the leverage ratio is large, then$40,000Your risk will be greater, because the greater the leverage ratio, the smaller the margin ratio. This means that your investment limit will be reduced, the investment threshold will be lowered, and the more sufficient funds that can be used to trade losses, which effectively protects the account. Risk of exploding positions. On the contrary, if the leverage ratio is small, the risk will be relatively reduced, because the smaller the leverage, the more margin will be occupied, and the available loss on the trading position will be reduced. However, if a short position occurs, the loss from the short position will also be a lot, so it is not Very suitable for investors with small funds.

However, in a sense, the size of leverage does not have much impact on risk. The relationship between leverage and risk mentioned above is that if the amount of open positions is the same, if investors choose low leverage, but strictly control their positions and try to choose light positions, they will not increase the risk due to the increase in low leverage margin.

Therefore, the choice of speculating on foreign exchange leverage. It mainly depends on the difference in account models under different levers. Normally, high leverage is one of the means for gambling platforms to attract customers and make profits.

How much leverage is appropriate to speculate on foreign exchange? Because the editor has a better understanding of FXCM, it can only be said here that if investors use FXCM, 100 times leverage is more appropriate. However, above we introduced the method of selecting leverage for foreign exchange speculation. Investors can make their own choices according to the above method.