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# Foreign exchange trading of the long term for gold or short term for gold

We often see repeated emphas cashbackforexexness on the "sell forexrebateclub buy" forex rebate club model, because this is not only the essence of the modern f cashbackforexbrokerancial markets, but also the reason why foreign exchange cashback forex trading has vitality in the foreign exchange knowledge, what is "sell and buy "? From the literal understanding is, good to sell things to buy, in order to sell and designed for the market to come and deeper meaning is: suitable for short-term speculation of financial products to have more people buy, in order to facilitate the short term speculators (speculators) and the design of the trading model is more viable foreign exchange margin trading model is a particularly suitable for short term trading or short term speculation trading model (of course, do medium and long term Can also) there are many foreign exchange market or virtual financial market analysts or traders are not in favor of short-term speculation - not only because they oppose speculation, especially the stock market and foreign exchange investors, they prefer to cover the strategy, the so-called "dead but not sold" but, in doing margin trading we If we also take this "dead but not closed (position)" trading strategy, may lose a lot of opportunities The key to this reason is that we use the margin - capital leverage ratio of the way to enlarge For example, we buy 1.35 million yen at the price of 135, in the case of the real market needs 1000 For example, if we buy 1.35 billion yen at 135, it will cost us $1,000 in the real world, but only$10 with 100 times the margin, and conversely, if I use $1,000 to buy 1.35 billion yen, in the real world. For every 100 points up or down, my profit or loss is$1I, while in margin trading, for every 100 points up or down, my profit or loss is 50% of the principal - $500 in the case of live trading, usually$10 of Han earnings will not close the position, because there is almost nothing left after deducting the commission (or even not enough commission); however, in the mode of margin trading, investors have 500 USD gain will generally close the position, even after deducting the $10 commission (often not so much) there is$490 USD receipt On the contrary, if it is the wrong direction, without 100 points investors should have taken measures, either stop loss, or hedge, while in the case of live trading, investors will be very numb due to the above process of 100 points of fluctuations occur almost every day, almost in all currency pairs Therefore, live investors are used to doing long term, while margin investors have to do more short term and, for risk prevention reasons, margin trading is also more suitable for short term trading