The foreign exchange market is the most perfect investment market because of the global participation of all mankind. Therefore, this is fair trade based on equality and justice among countries. Its daily average trading volume is $3 trillion, which is 80 times of the total trading volume in the global futures market. This kind of trading volume cannot be manipulated by the central bank of any country for a long time, and can only be intervened for a short time at most. Intervention will cause a series of political and economic reactions in the international community. Therefore, such intervention is transparent, and individual investors will get this information through many media in many countries in the world at the first time. These international information cannot be blocked by the government of a certain country. In addition, all multinational companies must balance their income and expenditure in various countries through the foreign exchange market. Friends who have studied finance know that there is a special "exchange gain and loss" subject to calculate the exchange rate difference of foreign exchange. In other words, many transactions in the foreign exchange market have settled down, and your profits may come from the exchange rate losses that occur when multinational companies purchase foreign exchange. According to accounting principles, these exchange rate losses enter the cost of the enterprise. And these costs are ultimately borne by consumers all over the world. Thus, the foreign exchange market is more open than the stock market.
A good speculative tool must have the following characteristics: first, it has high liquidity and huge liquidity and trading volume, which can minimize risks and prevent a few people from manipulating it for a long time. Secondly, market trading rules are transparent, trading methods are flexible and trading costs are low.
2.24-hour continuous trading market
The foreign exchange market is different from the stock futures market because of the different nature of its market demand. As a currency exchange, the market cannot be closed, so the time of many foreign exchange exchanges around the world is overlapping, spanning 24 hours. Round-the-clock trading can meet the global demand for currency exchange, because there is always a hemisphere on this planet every day. To give global money demanders a fair trading opportunity, there must be a 24-hour trading mechanism. Such a trading system excludes the possibility of sharp fluctuations in opening and closing prices. This can benefit global fund demanders.
3.T+0 circulation, two-way transaction
Whether it is cash trading or margin trading, the foreign exchange trading market is T+0. It can respond to exchange rate changes in time, which is conducive to the short-term arbitrage of personal small funds. If margin trading is carried out, it can also be traded in two directions.
At present, there are two foreign exchange trading modes that are welcomed and accepted by the public.
"spot foreign exchange transactions"
Known as "firm trading" in China, it is a foreign exchange trading method with relatively small risk and relatively small income. All major domestic banks have this trading service. These domestic banks earn a high price difference, which is actually equivalent to trading with domestic banks, and then domestic banks trade with the international market. Different currencies have different spreads, and the average spread is around 20-30 points. Every bank has its own spread standard. The demand for funds is relatively large.
"margin trading"
It is similar to the contract mode of futures, which provides a capital lever and can be traded with a small amount of funds and a large amount of funds. At present, this kind of transaction is not allowed in China. Therefore, at present, domestic speculators must open accounts with some foreign margin dealers. Because of the existence of trading leverage, small funds are actually magnified by dozens to hundreds of times, so traders do not need to pay more transaction fees except for the spread of 3-5 points charged by margin traders. Margin trading mode is a high-risk transaction, but its trading rules and entrusted ordering methods are also more flexible than cash trading. After several hundred and four hundred years' development and perfection, the international foreign exchange market has added many ranking principles and risk control elements to the margin trading mode, which has greatly reduced the risk. Limited risks, huge capital leverage and low transaction costs are really attractive.