The second step is to open a position on the trading software. After deciding the currency pair of the transaction, the trader should establish an order on the trading software (such as mt4), which is what we often call a position. Once the exchange rate reaches the expected price of the trader, the position can be closed, that is, the position can be closed.
The third step is to manage the account. After establishing positions, traders need to pay attention to the market situation and manage their accounts, focusing on the established positions. Traders need to be reminded to set stop loss points and take profit points.
The fourth step is to close the position. This is what we often call liquidation. Traders can close their positions at any time according to their own wishes and end the transaction.
1. Business introduction
Through foreign exchange transactions, individuals can sell their foreign currency and buy another foreign currency with a higher deposit interest rate or appreciation, so as to obtain higher interest income or gains from foreign exchange appreciation and avoid exchange rate risks. If you buy a currency with a higher interest rate and it is appreciating, then you can benefit from the exchange difference and interest. Through foreign exchange trading, individuals can also adjust the currency structure of foreign exchange in their hands, which is not only convenient to use, but also conducive to maintaining value.
At present, according to the relevant national policies and regulations, only firm foreign exchange trading can be carried out, and false foreign exchange trading cannot be carried out. Therefore, personal foreign exchange trading belongs to firm trading (overdraft, margin and other transactions are not allowed), and individuals conduct firm foreign exchange trading through counter service personnel or other electronic financial services within the trading time specified by the bank. Entrusted by customers, the Bank converts one foreign currency into another according to the quotation of its personal foreign exchange trading business. At present, RMB is not fully convertible, and RMB and foreign exchange are not freely traded. Individual residents can open an account in a bank with cash, or transfer their existing cash account deposits to a bank that provides personal foreign exchange trading business. In terms of transaction means, you can go to the bank counter to handle transactions, or you can buy and sell foreign exchange by telephone or online.
2. buying and selling characteristics
Compared with investment products such as stocks, bonds and futures, personal foreign exchange trading has its own characteristics, mainly as follows:
Long trading time
As the global foreign exchange market runs 24 hours in a row, foreign exchange transactions take the longest time. As long as the bank can provide services, individual residents can conduct 24-hour foreign exchange transactions.
The exchange rate fluctuates greatly.
personal foreign exchange trading
personal foreign exchange trading
At present, the global exchange rate system is mainly floating exchange rate, and the international foreign exchange market is affected by various international political and economic factors and various emergencies, so exchange rate fluctuations have become a normal phenomenon, and sometimes even fluctuate greatly. There is no limit to exchange rate fluctuations in the international foreign exchange market. Exchange rate fluctuation brings opportunities and risks to personal foreign exchange trading business.
The trading methods are diverse and flexible.
At present, personal foreign exchange trading can be carried out through bank counter service personnel, telephone or self-service trading equipment.
The money bought and sold is a freely convertible currency.
As the US dollar is the medium currency of international foreign exchange market transactions, most foreign exchange transactions involve US dollars, such as US dollars/Japanese yen, Euro/US dollars, British pounds/US dollars, US dollars/Swiss francs and so on. After the advent of the euro, the transactions between the euro and major convertible currencies have attracted more and more attention from the market.