In High Leverage Retail FX Market, the Margin Call Rate is 35% and It is Difficult for Individual Traders to Survive.

16 Pages Posted: 10 Aug 2017

See all articles by Xinbin Zhang

Xinbin Zhang

Beijing University of Posts and Telecommunications (BUPT)

Date Written: August 9, 2017

Abstract

Leverage control is an important issue in financial system and a challenge for financial professionals. How do individual FX investors deal with the leverage? Using a large data set from a FX social network, I find out that retail FX traders are poor at leverage control: under a survivor bias dataset, 35% accounts fail to control their leverage and have received Margin Call.

Keywords: Leverage control, Margin Call, retail FX traders

Suggested Citation

Zhang, Xinbin, In High Leverage Retail FX Market, the Margin Call Rate is 35% and It is Difficult for Individual Traders to Survive. (August 9, 2017). 30th Australasian Finance and Banking Conference 2017, Available at SSRN: https://ssrn.com/abstract=3016144 or http://dx.doi.org/10.2139/ssrn.3016144

Xinbin Zhang (Contact Author)

Beijing University of Posts and Telecommunications (BUPT) ( email )

No 10, Xitucheng Road
Haidian District
Beijing, 100876
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
501
PlumX Metrics