Foreign exchange margin is the freest, fairest and most advanced trading method in all financial markets in the world today. Its advantages are as follows:
1, 24 hours trading
Trading is continuous 24 hours a day from Monday to Friday, which is convenient for entering and leaving at any time and avoids the risks caused by gaps every other day. Although there is a gap in the news released regularly during the day, it can be avoided by pre-ordering or empty positions. 24-hour trading also gives office workers enough time to invest and make profits. In particular, the active period of the foreign exchange market is relatively concentrated from 3 pm to 1 1, which coincides with the domestic stock and futures markets in time, providing convenience for domestic office workers to engage in this freest "second job". If they make long-term orders, it will be more worry-free and labor-saving.
2. Global market
Participants in the foreign exchange market include banks, central banks, financial institutions, import and export traders, enterprise investment departments, fund companies and individuals. According to the statistics of the International Monetary Fund, the global daily turnover is close to 2 trillion US dollars, so as a global market, it is impossible to be manipulated by some people or institutions. One is to facilitate technical analysis, and the other is to facilitate the entry and exit of large funds. The transparency of the foreign exchange market is also very high. Quotations, data and news are all open, and investors can get relevant information at the same time.
3. There are few trading varieties.
Trading in the foreign exchange market is concentrated in six currency varieties in seven countries or regions, namely, Euro/USD, GBP/USD, AUD/USD, USD/JPY, USD/CHF and USD/CAD. And the varieties have strong linkage, which is convenient for concentrating on investment analysis.
4. Risks can be flexibly controlled.
Because the daily average volatility of the foreign exchange market is about 1%, and the leverage ratio provided by brokers is usually 100 times, the daily average risk return is between 1%- 100%, so novices can flexibly grasp the risk level. Beginners can start with 65,438+0% risk return, and gradually improve the risk return after entering a stable profit state. For example, investors use 1 0,000 yuan to open an account, and only trade 1 0,000 (1k) when they start trading, thus controlling the risk at 1%. In addition, margin trading can be regarded as a firm offer.
5, two-way transaction, flexible operation
You can buy first and then sell, or you can sell first and then buy. The buying and selling currency is not limited (this is an important difference from the firm offer), and of course it is T+0. You can do short-term work repeatedly in a day. Trading can preset limit orders and stop orders to keep profits and control losses.
6. High leverage ratio
High leverage facilitates flexible positions, but it is a double-edged sword. For high-level investors, under the premise of strictly controlling risks, profits or floating profits can continue to use high leverage to add positions, which makes it possible to realize profiteering.
7. Low transaction costs
There is no commission for foreign exchange margin trading, and the income of banks or brokers comes from the spread (the spread between buying and selling at the same time), which is generally 3-5 points (except USD/JPY 1 is 0.0 1, and other varieties 1 is 0.000 1, which means one in ten thousand). In addition, overnight positions, such as holding high-interest currencies, can enjoy interest; If you hold a low-interest currency, you need to pay interest. Generally speaking, the transaction cost is very low.
8. Low barriers to entry
To participate in foreign exchange margin trading, you can open an account by fax and internet, and the procedure is simple. Foreign exchange brokers have different regulations on the minimum amount of funds for margin account opening, ranging from several hundred dollars (mini account) to several thousand dollars (standard account). It can be said that the success of foreign exchange trading depends not on the amount of funds, but on the level of operation. Small funds can grow rapidly, providing another battlefield for the working class to realize their dream of wealth.
So, what are the disadvantages of foreign exchange margin trading? It's easy to lose money, fast and much. You can earn 10000 in half a day or lose 10000 in half a day. In short, risk is always in direct proportion to income.
If you want to make money from the futures market, such as the foreign exchange market, you must first have rich and solid financial knowledge and skilled trading techniques, so as to make money from it!