In recent years, forex trading has been a popular investment method in financial investment because its settlement method is relatively easy, and the income is also high, and many people have loved it. But for novices, foreign exchange trading is not that simple, and a lot of foreign exchange knowledge is still relatively vague for beginners, especially since the trading volume of foreign exchange transactions is manually measured. We often hear how many hands have been traded and how many hands have been closed when conducting foreign exchange transactions. The writing here is the transaction volume. So, what is the first-hand foreign exchange transaction? What are the first-hand transaction costs and handling fees?
How much is the first lot of foreign exchange transactions?
In the foreign exchange market, there are two statements about traders. The first one represents a standard hand and is very popular. The second-hand means 0.01 familiar lot, regarded as the smallest unit of foreign exchange transactions. Let us use one hand to explain a standard needle.
The total capital represented by the first-hand foreign exchange transaction is US$100,000. For example, if a trader conducts a second-hand trade between the United States and Japan, they will buy the equivalent of 100,000 U.S. dollars in Japanese yen for the transaction. Of course, in actual trading, traders do not need the real $100,000; leverage will expand their funds.
What are the fees and handling fees for foreign exchange transactions?
The cost and handling fee of foreign exchange transactions mainly include two parts:
One is the margin that needs to be paid in foreign exchange transactions,
The second is the spread of foreign exchange transactions.
Foreign exchange margin is a certain margin that investors need to pay when establishing a position. Due to the cost of installing a role in foreign exchange transactions, the foreign exchange margin will be returned to the trader when the trader closes the work, so this is not a strict cost. But when opening a position, you cannot open a position without deposits.
In the example above, for the first-hand U.S. and Japan, under 400 times leverage, the required margin is 250 USD, and if it is 100 times leverage, it is 1000 USD.
The handling fee for foreign exchange transactions is the spread, which refers to the difference between buying and selling prices when opening a position. Spread is the main cost that traders need to pay for the transaction and will not be refunded.
The differences between different foreign exchange platforms are also other. The handling fees for one-hand foreign exchange transactions are additional, requiring traders to see the differences between their trading platforms.