Whether it is stock trading or futures trading, you can see a sentence, investment is risky, and you need to be cautious when entering the market. As a new investment method, foreign exchange speculation inevitably has certain risks, such as false margin trading. Under the action of leverage, the risk is no less than that of stock trading. If leverage is not considered, is there no risk? That was not the case. The first is the risk of foreign exchange trading. This is because the exchange of local currency and foreign currency will generate foreign exchange risks. The main risk that foreign exchange banks undertake in foreign exchange trading business is foreign exchange risk. Enterprises or individuals other than banks who make loans or borrowings in foreign currencies and conduct foreign exchange transactions with foreign currency loans and borrowings will also have the same risks.
Secondly, the risk of transaction settlement. In order to conduct foreign exchange transactions in the future, we will exchange some foreign currencies with our own currency in advance, but no one knows what the exchange rate will be in the future, so there is a risk of depreciation.
The risk of foreign exchange conversion is also a part that cannot be ignored. When an enterprise conducts accounting treatment and final accounts of foreign currency creditor's rights and debts, if the applicable exchange rate is different when evaluating creditor's rights and debts, there will be differences in book profits and losses.