Foreign exchange speculation gains profits by correctly judging trends. For example, the current exchange rate of Euro/USD is 65,438+0.465,438+000. If the trend is upward, do more (that is, buy more). After deducting normal transaction costs, the more you go up, the more you earn. On the contrary, the trend is downward. If you short (that is, buy down), the harder you fall, the more you earn. The key is that you should judge the direction. Foreign exchange speculation is somewhat similar to futures trading, because of the leverage effect, it can be small and wide, and investors can get more benefits with a small amount of funds. In foreign exchange margin trading, every earned 1 point under the condition of 1 standard lot is equivalent to 1 USD, and 0. 1 lot is1USD.

For example, take your 65,438+0 euro/dollar long position (that is, buy) as an example. At that time, the exchange rate of Euro/USD was 65,438+0.465,438+000. If the market rises to 1.4 108, which is in line with your judgment, it means that you have earned 8 points. Similarly, shorting (that is, buying down) is also a truth. In other words, no matter how the market changes, as long as you judge the right direction, you can make money, unlike stocks that can only rise to make money. Please discuss with us if you have any questions.

* Representation of exchange rate: In the international foreign exchange market, the exchange rate is displayed in five digits.

Such as: Euro/USD1.3700; GBP/USD1.6070; USD/JPY) 82.50. The exchange rates of the United States and Japan are quite special. Because the yen has been appreciating, in the past, 1 dollar could be exchanged for more than 100 yen, but now it can only be exchanged for more than 80 yen, so the US-Japan exchange rate has become a four-digit display.

* Minimum exchange rate change: the minimum exchange rate change unit is one point, that is, the change of the last digit.

Such as: Euro/USD 0.0001; GBP/USD 0.0001; Usd/JPY 0.0 1.