In carrying out Forex margin (foreign exchange margin trading), there’s a need to open an account, from that time, you will deposit certain amount of money as collateral. This collateral is called "margin".
"Margin" is necessary to start Forex trading. Margin plays a role like collateral for trading. Usually, the actual margin, by depositing the amount of 10% ~ 5% of the transaction amount, trading can be performed. The fact that you can have capital efficiency is the biggest feature of Forex.
The leverage means 「a lever」. Lever can lift big items with small force.
Leverage, which is the biggest feature of Forex, can be put on collateral funds (trade guarantee money), you can trade many times as much as you can and expect big returns!
For example, if you trade in 10 times the 1 million yen of margin, the tradable amount will be in fact 10 million yen, also, you can say that such transaction where there is a cell twist is called "leverage".
By making "leverage" effective like this, you can draw many times the amount of cash at hand (trading margin). This is a feature of leverage. Of course, while pursuing the return of investment efficiency, the same amount of risk may apply. Therefore, although it is said that "Forex is risky", if you understand well the mechanism of leverage and the characteristics of the Forex company, you can take advantage of opportunities and control risks to a small degree. Keeping in mind that leverage is a high risk high return, use the mechanism well and start Forex trading!
In GEMFOREX, it’s possible to trade at 1,000 times leverage, the highest level in the industry.
※ An account balance of 20,000USD or more will be 500 times leverage.
High leverage is often considered as a symbol of high-risk, but in fact, it’s quite a reverse.
For example, each requires, if you have 10 million for trading,
In the 10 times leverage, one million of margin.
In 1,000 times leverage, 10,000 margin.
In this way, contrary to what the public thinks, the higher the leverage, the more it can be operated at low risk.
In addition, in GEMFOREX, if by any chance, the account balance becomes negative, we have a system to offset the negative balance with a grant of bonus at Hong Kong time 8:00 am. Even for those who have not yet received a bonus, by the time of additional deposit, to avoid margin call, we will reflect your deposit after the negative balance was reset to 0. You can have a safe and active investment leverage.
In order to provide the customers with this merit, we develop the highest leverage in the industry. So, for the overseas Forex beginners and those considering forex for the first time overseas, our service is made safer and easier for you.