{"title":"In High Leverage Retail FX Market, the Margin Call Rate is 35% and It is Difficult for Individual Traders to Survive.","authors":"Xinbin Zhang","doi":"10.2139/ssrn.3016144","DOIUrl":null,"url":null,"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.","PeriodicalId":247348,"journal":{"name":"Behavioural Finance IV","volume":"86 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2017-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Behavioural Finance IV","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3016144","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
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.