Difference between foreign exchange and crude oil (asphalt) 1. The daily fluctuation of foreign exchange price is small, and the fluctuation of crude oil price is large;
Second, the variety of foreign exchange is not conducive to analysis, and the variety of crude oil is single;
Third, the daily turnover of the foreign exchange market is greater than that of crude oil;
4. Manipulation exists in the foreign exchange market;
5. Most foreign exchange dealers are abroad, mostly in the United States; Most crude oil traders are in China and Hongkong. The reasons for the change of crude oil price are mostly influenced by the supply and demand relationship of crude oil itself and international political relations. Therefore, as an investor with his own investment principles, he should try his best to understand any factors that affect the supply of crude oil and the influence of international politics on crude oil, so as to further understand the dynamics of other investors in the market and predict the trend of crude oil prices in order to achieve the purpose of reasonable investment.
The main factors include several aspects.
(1) dollar trend
(2) War and political turmoil.
(3) the world financial crisis
(4) Inflation
(5) the price of gold and silver
(6) Local interest rate
(7) Economic situation
(8) Oil supply and demand relationship
Skills of becoming a foreign exchange expert 1.8 major currency pairs
As a foreign exchange novice, the first thing you need to know is these eight currencies: US dollar (USD), British pound (GBP), Japanese yen (JPY), Euro (EUR), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD) and New Zealand dollar (NZD). Although currencies are traded in pairs, under normal circumstances, 18 different currency pairs are often mentioned in the foreign exchange market, including USD/Canadian dollar, EUR/USD, USD/Swiss franc, Australian USD/USD, GBP/USD, NZD/USD and USD/JPY. There are much more currency pairs in the whole foreign exchange market, and many platforms can provide 28 currency pairs including the above example and other * * *.
2. About overnight interest
Currencies are paired, so in every foreign exchange transaction, when you buy one currency, you are selling the corresponding other currency. The central bank of the country where the currency is located sets interest on its own currency. When you sell money, you are obliged to pay this interest. When you buy money, you can enjoy the interest earned. For example, suppose that the interest rate set by New Zealand is 3%(300 basis points) and that set by Japan is 0. 1%( 10 basis points). If you decide to buy NZD/JPY currency pair, you can get annualized interest of 300 basis points, but you need to pay interest of 10 basis point, so the spread is 2.9% or 290 basis points.
3. Save money with a lower spread.
The difference between the buying price and the selling price of money is called the spread, which is based on? Point? Calculated. Foreign exchange brokers don't need commissions, but make money by the difference between the purchase price and the purchase price. Before trading, we should compare different dealers and different spreads, because the spread may be directly reflected in our profits.
4. Choose a reliable investment institution
Foreign exchange brokers are usually closely related to big banks or lending institutions because they need to provide huge leverage for their customers. Similarly, foreign exchange brokers will be registered with the corresponding regulatory authorities and licensed. You can find this information on their website or the website of the head office, or other financial information and the statistics of the foreign exchange commission. It is best to be authorized and supervised by the Financial Market Conduct Authority (FCA) in the UK. The supervision in the United States and Japan is also good. You can find a detailed description of these regulations on their official website.
5. The right tool = success
Foreign exchange brokers, like brokers in other markets, will provide customers with different trading platforms. These trading platforms usually have these characteristics: real-time charts, technical analysis tools, real-time news and data, and even provide support for trading systems. Before cooperating with the agent, you should make sure that you have used different trading platforms in advance. Brokers often provide technical and fundamental comments, financial calendars and other surveys.
6. Keep an open attitude towards the choice of leverage.
Because the fluctuation of currency exchange rate is small, the role of leverage in foreign exchange is relatively important. Leverage can be understood as the ratio between total available capital and real capital, which is the amount of capital that brokers can lend you for trading.
7. Reject brokers with bad reputation
Will brokers with bad reputation use deception to increase profits? He may trade before your preset point. Of course, no broker will admit that he has done this kind of behavior, and there is no blacklist for such brokers or institutions to report this kind of behavior in the market. Secondly, when you trade with the money borrowed from your broker, even if you have enough money to pay for the transaction, your broker can trade according to his own judgment. If your trade is in a downturn before rebounding to a record high, some unscrupulous brokers will ask you to add margin at the low point. The only way to determine which brokers will do this behavior is to communicate with people in the financial investment industry.
8. Basic analysis and technical analysis
Every transaction is different, and the best way to trade is to combine technical and fundamental analysis. Smart traders will use a lot of fundamental information when using technology to find the best entry and exit points in the market. Fundamental indicators include consumer price index (CPI), retail sales and durable goods. In addition, the meeting of the Federal Open Market Committee will also affect market volatility. Technical analysis is particularly popular among foreign exchange brokers, which usually includes Eliot band theory, Fibonacci research and axis point analysis.
9. Flexible use of foreign exchange strategy
There are many channels for successful trading in the foreign exchange market, but in order to take advantage of these opportunities, it is best to know your own strengths and weaknesses first. For example, do you prefer short-term planning or long-term planning? And how to use fundamental and technical analysis?
Practice makes perfect.
Foreign exchange is a decentralized market, and many traders will quote appropriate quotations according to different trading platforms. In this way, before investing your own principal, you need to understand the characteristics of each trading software. Open a simulated account for virtual trading until you get the same profit as expected, which is the ideal exercise. Many people quickly enter the foreign exchange market, and they will lose a lot of money quickly when they lack the ability. Before injecting capital, it is very important to take the time to learn how to trade correctly, and the best way to learn trading is to operate more.