1, the stock market can only trade at a specific time of the day, usually from 9: 30 am to 4: 00 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.
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.
3. The trading volume of the stock market is much smaller than that of the foreign exchange market, and tens of millions of non-professional investors affect the normal operation of the market, which makes it more difficult to predict the market trend. The foreign exchange market is the largest financial market in the world, including many large participants-banks, investment funds, companies and other financial institutions. Therefore, no matter how many individual investors participate in the foreign exchange market, the impact on prices is minimal.
Another disadvantage of the stock market is that in the bear market, investors can do nothing but be trapped. 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 the short-selling mechanism of foreign exchange margin.
The previous global gold market was mainly distributed in Europe, Asia and North America. Europe is represented by the gold markets in London and Zurich; Asia is mainly represented by Hong Kong; North America is mainly represented by new york, Chicago and Winnipeg.
The trading hours of the major gold markets in the world are all based on London time, resulting in the continuous gold trading between London and new york (Chicago): the morning pricing in London at 10: 30 opened the prelude to the gold market in North America, and new york and Chicago opened one after another. After the pricing in London in the afternoon, new york and others were still trading, and then Hongkong joined in. The closing price in London will affect the morning market price in the United States, and the closing prices in Hong Kong and the United States will affect the opening price in London.
The gold market is a global market and can be traded around the world for 24 hours. Gold is easy to realize and can be quickly converted into any currency, forming a convenient exchange relationship among gold, local currency and foreign currency.
As an international currency, the US dollar has assumed three functions: the medium of transaction, the storage of value and the unit of valuation. At present, more than 80% of international trade is settled in US dollars, and the share of US dollars in foreign exchange reserves of all countries in the world exceeds 60%. However, in oil transactions, 100% is settled in US dollars (assuming that the transactions of Iranian oil exchange are not considered for the time being). It is said that this comes from an "unshakable agreement" reached by the United States and Saudi Arabia in the1970s.
Where did this agreement come from? The author looked through a lot of literature but couldn't find it. However, the content of the agreement is roughly that Saudi Arabia agrees to use the US dollar as the only pricing currency for oil. As Saudi Arabia is the largest oil exporter in the world, other OPEC members have also accepted this agreement. The US dollar is about equal to oil, which has become the consensus of the world. Any country that wants to trade oil has to use the US dollar as a reserve. In fact, this is equivalent to the dollar being linked to oil. For the United States, it is not the exchange rate that is important to use the US dollar as the pricing currency for international oil transactions, but the monopoly position of the US dollar as a trading medium, which consolidates the hegemonic position of the US dollar.