1.24-hour foreign exchange trading The stock market can only trade at a specific time of the day, usually from 9:30 am to 3:30 pm. Especially if you still have your own job, you will face a dilemma-either give up your job or quit the transaction. Foreign exchange margin trading can be 24 hours a day, 5 days a week, and you can invest in margin trading in your spare time at night. Even if you are trading stocks, you can still invest in the foreign exchange market at night.
It is easy to choose foreign exchange trading varieties. There are hundreds of stocks in the stock market, so it will be very difficult to choose stocks. In the foreign exchange market, currency combinations are very limited, which allows you to concentrate on these currency combinations and quickly grasp their pulse.
The foreign exchange market is more transparent, because its trading volume is much larger, so it is not easy to be manipulated by any institution or country. However, the trading volume of the stock market is relatively small, and it is easy to be manipulated, resulting in more shady scenes, which is unfair to ordinary investors.
4. Two-way trading in the foreign exchange market, you can buy first and then sell for profit, and when predicting the market decline, you can sell first and then buy for profit. When the stock market is in a bear market, investors can do nothing but quilt cover. When the economy is booming, most investors can make profits, but the economic development is alternating. When development is replaced by recession, investors can only hold their ground. In the foreign exchange market, whether the economy is developing or declining, investors can make profits, which is entirely due to the short-selling mechanism of foreign exchange margin.
5. Trading Leverage The foreign exchange market generally allows leveraged trading. In other words, only part of the deposit can be used for all transactions. At present, most traders provide 50 ~ 400 times leverage. Without leverage in the stock market, petty bourgeoisie can never earn more.
Foreign exchange margin trading and futures trading
1, high liquidity
The daily trading volume of the foreign exchange market is as high as $3 trillion, making it the largest financial market with the highest liquidity in the world. Compared with the trading volume and foreign exchange market, the scale of other financial markets is much inferior. If you take the futures market with a daily trading volume of only $30 billion as an example, you will have a clear concept of the degree of liquidity. The foreign exchange market is always liquid, and it can trade or stop trading at any time.
24 hours a day.
The foreign exchange market is a non-stop market. Foreign exchange trading starts every morning in Wellington, New Zealand, then opens at 7: 00 in Tokyo, 3: 00 in China, 3: 00 in Frankfurt, 4: 00 in London, England, and 8: 00 in new york, USA. For investors, whenever and wherever any news happens, investors can respond immediately. Investors can also flexibly plan the time of entry or exit. The time is quite flexible and will not delay anything else.
Compared with the futures market, the business hours are limited. As far as Dalian Commodity Exchange is concerned, its business hours are from 9 am to 3 pm Beijing time. Therefore, if no important news about London, new york or Tokyo is announced during business hours, the opening of the next day will be very chaotic. Jumping off buildings often happens.
3. Quality and speed of transactions
Every transaction in the futures market has a different trading date, a different price or a different contract content. Every futures trader has the following experience. A futures transaction often takes half an hour to close, and the final transaction price is bound to be far apart. Although there is the assistance of electronic trading and the guarantee of binding trading, the trading of market price list is still quite unstable. The foreign exchange market provides stable quotations and real-time transactions. Investors can trade through the real-time market quotation on the online platform. Even in the busiest market conditions, there is no difference between the market price and the transaction price. In the futures market, the uncertainty of transaction price is because all orders must be matched through centralized exchanges, which limits the number of traders, the flow of funds and the total transaction amount at the same price. And our real-time quotation system can ensure that all market orders, limit orders or stop-loss orders are completely closed.
4. Foreign exchange transactions are free of commission.
Buying and selling in the futures market, in addition to the price difference, investors must also bear additional commissions or handling fees. All financial commodities have a bid price and a bid price, and the difference between the bid price and the bid price is defined as the price difference, or transaction cost. Until today, because of the lack of transparency, the unreasonable price difference in the futures market is still a fact. Now, investors can judge the depth of the market and the real transaction cost through the real-time display of the buying price and selling price on the online trading platform. The spread of foreign exchange trading is much lower than that of futures trading, especially after-hours trading, because futures investors are easily affected by low liquidity and suffer great losses.
No matter whether you place an order by phone or online, there is no extra commission or handling fee for online foreign exchange transactions. The over-the-counter trading structure of the foreign exchange market reduces the cost of exchange and clearing, thus reducing the transaction cost. In addition, through network technology, investors can see the exchange rate in real time and reduce the exchange cost, so there is no commission and handling fee. All investors can buy and sell through real-time quotation. Futures only quote the last transaction price, which is not applicable to the market price of the transaction, and the real transaction cost is hidden.
5. Transaction details and form functions
In the foreign exchange market, investors can immediately see the profit and loss changes of account funds and open positions. As the exchange rate changes, all information will be recalculated immediately. Investors can see detailed account information at any time, including each open and unfinished list and the profit and loss of each transaction. Investors can also choose daily, weekly, monthly and even annual reports through the 24-hour editing function of the online trading platform. Therefore, you no longer have to guess how much the account balance is or whether the deposit is enough.
6. Margin and risk management
In order to do a good job in risk management, investors must have a limit on the number of foreign exchange positions, which is related to the cash balance in the account. In the foreign exchange market, the risk can be minimized, because the online trading platform can automatically calculate the balance in the account, and when the balance is insufficient, a notice of additional margin will be issued, and then the system will automatically close all open positions to prevent investors from losing more than the account balance. However, in the futures market, when the market changes in the opposite direction, investors will be forced to close their positions, which may not only lose all their money, but also bear all the losses after closing.