Anyone familiar with foreign exchange knows that foreign exchange can be divided into foreign exchange real and foreign exchange virtual disk according to the trading mode. Some people may have heard of it, but still, don't understand the difference between the two. Here is a brief introduction to the difference between the real and virtual disk of Forex.

The difference between foreign exchange real disk and virtual disk

Foreign exchange virtual disk is also called foreign exchange margin trading, which means that investors use the form of margin to conduct foreign exchange transactions within a range of expanded investment amount according to a certain leverage multiple. For example, under 100 times leverage, an investor's $1 is equivalent to using $100 for foreign exchange trading. The foreign exchange of real trading is how much the amount of investment is used to trade.

Although the foreign exchange trading through leveraged trading can expand the profit margin of investors, it also increases the investment risk, while the profit and risk of foreign exchange firm is relatively low.
The foreign exchange firm mainly makes money through foreign exchange, while the foreign exchange virtual disk is to sell through empty sales.

Foreign exchange trading can only buy up and not buy, while virtual disk can buy up and down two-way trading.
The spread of foreign exchange trading is generally between 16-40, the transaction cost is larger, and the spread of the virtual disk is between 4-5, and the transaction cost is relatively low.

Foreign exchange trading is mainly carried out by major domestic banks, such as foreign exchange treasures and other products. Through the exchange between foreign exchange currencies, the calculation according to the exchange rate changes, because of the low risk of foreign exchange, it is suitable for those who like low-risk investments. Moreover, due to the excessive risk of foreign exchange virtual disk, domestic virtual disk trading has been banned.

Author's Bio: 

I Manisha, Market researcher highlighting the topic of "The Difference Between Foreign Exchange Real Disk and Virtual Disk " Also, we provide Forex tips and Currency tips