Foreign exchange investment needs to remain calm at all times, if you do not know enough about yourself and the market to trade, the result can only be to let oneself suffer. Today we will talk about why foreign exchange investment can easily burst positions.
Breaking a position is when your available margin is 0, you can’t trade without the available margin. Forex trading is the amount of money available after the loss is greater than the margin removed from your account. The remaining funds after the company’s strong level is the total funds minus your losses, generally there is still a part left.
Forex trading is a situation that the client’s equity in the investor’s margin account is negative under certain special conditions. For example, if the investor margin is the trading margin occupies the vast majority of the funds in the account when it is in the market situation and the direction of trading is opposite to the market trend, it is easy to open positions due to the leverage effect of margin trading.
If a close results in a shortfall and is caused by investors, the investor needs to make up for the shortfall or face legal recourse.
Most of the bursts are related to improper management of funds. In order to avoid this situation, it is necessary to control the amount of positions and reasonable fund management, avoiding the operation of full positions as may occur in stock trading. Moreover, foreign exchange and stock trading is different, which means investors must keep track of the stock index futures market. Therefore, stock index futures are not actually suitable for all investors.
Before doing forex trading, survey and analysis of market need to be done while you enter the market. Furthermore, appropriate self-assessment and sufficient patience are necessary in the game. Finally, do not forget that over-flustered attack will only bring more drawbacks.