Contract principal (margin) description

2018/10/26 10:44:03

It is equivalent that a customer completes an order and generating a contract. Trading on our platform, the traders only need to pay a small amount of funds at a certain rate of the contract price as the financial guarantee for the fulfillment of the contract, and then can participate in the sale and purchase of the contract. This kind of fund is the contract principal, also known as the contract margin.

For example, if the platform collects the customer's contract ratio as 1% margin, it means that the customer only needs to pay 100 $ to make a 10,000$ transaction. In this way, investors' capital utilization efficiency will be higher, because only a small proportion of the total order amount will be needed to invest for conducting a transaction, while the investors enjoying the full benefits and risks brought by market fluctuations.


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