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Question:

What does it mean for spot crude oil?

What does it mean for spot crude oil?

Answer:

Spot oil deposit popular point that is a spot oil trading guarantee funds before the operation in the can, since it is the guarantee funds, is only temporarily frozen, if the order is cancelled (Ping Cang) deposit funds back to the account.
That is the so-called margin deposit, that is when you need to pay for each transaction by deposit, so what are you currently occupy the margin accounts inside how much your trading account. The more the number of operations, the more the deposit will be occupied. This shows that the margin is not deducted from the cost, only temporarily marked as a margin, and can not be repeated for sale. After the transaction is completed, it will again become your available balance.
Here must first talk about the concept of leverage. All transactions are executed with borrowed funds. This allows you to leverage leverage. 10:1 leverage allows you to deposit 100 yuan as a deposit can be traded in the market for RMB 1000. This means that you can immediately search for more money in the market than your account in order to take advantage of the smallest currency changes. On the other hand, leverage can significantly increase your loss. The use of any level of leverage for foreign exchange transactions may not be suitable for all investors. Of course, the amount of money required to hold a position is called the margin requirement. The actual deposit deposit can be regarded as necessary to maintain open positions. This is not a fee or transaction cost, but only a portion of the net value of your account will be allocated as a margin deposit.The problem can contact me.
Leverage from the margin, the smaller the guarantee, the greater the leverage, which means you can be small and broad, with less money to get greater value of crude oil to participate in the transaction, higher utilization of funds.

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