Foreign exchange is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. , which can be used when the balance of payments is in deficit. Including foreign currency, foreign currency deposits, foreign currency securities (treasury bonds, treasury bonds, corporate bonds, stocks, etc.). ) and foreign currency payment vouchers (bills, bank deposit vouchers, postal savings vouchers, etc.). ). By 20 15, China ranked first in the foreign exchange reserves of governments all over the world. The United States, Japan, Germany and other countries have a large number of private foreign exchange reserves, and the overall foreign exchange reserves of the country are much higher than that of China.

Advantages of foreign exchange speculation:

First, the purpose of investment information transparency

The object of foreign exchange investment is a country's economy, not a listed company, so the international market cannot be manipulated by some people, such as banks, foreign exchange dealers, funds, foreign exchange suppliers or even a country. There is no market-making behavior of the banker. Real-time market and financial news, transparent and open information.

Second, foreign exchange is a bilateral transaction.

Traders can buy currency pair contracts as the beginning of trading, or sell currency pairs as the beginning of trading. Similarly, they can buy and sell a pair of currencies as the end of the transaction. Whether it is up or down, it is possible to achieve profitability.

Third, the investment cost is light.

The amount of foreign exchange margin can be expanded to dozens of times, and the principle of financial leverage can be fully utilized to make it small and broad.

Fourth, the transaction volume is large.

Foreign exchange is considered as the most active and liquid financial product in the world. It is the largest and most liquid financial market in the world. The global daily foreign exchange trading volume is estimated to exceed $65438 +0.2 trillion. Such a huge flow makes the exchange rate change independent of anyone and more regular.

Five, can grasp the degree of loss.

Foreign exchange trading can set its own stop loss limit, which will not cause greater losses because there is no buyer or seller to bear it.

Six, twenty-four hours trading

As the earth rotates, the market shifts and trading hours continue. From the opening of the Sydney market on Monday morning to the closing of the US market on Friday night (except Saturday and Sunday, the transaction continued uninterrupted), there was a 24-hour continuous market. One of the biggest benefits of trading foreign exchange is the opportunity to trade 24 hours a day. This enables traders to respond at any time and gain the profit advantage brought by market changes.

Seventh, the rate of return is high.

Stocks only pay dividends four times a year at most, while foreign exchange investors can enjoy interest every day if they hold high-interest currency contracts. Enlarge capital and leverage ratio with small and broad. Unlimited ups and downs; You can do hedging and arbitrage trading.

Eight, analyze the trend data.

The foreign exchange market tends to follow the trend of repeated fluctuations. The money market shows certain regularity and creates price trends for market participants. These price trends increase the chances of profiting from trading.

Nine, consulting the price knocking at the door, correct.

Foreign exchange margin is bought and sold by telephone or online, so in the past 24 hours, investors can choose to appear at will, and there will be no risk of being trapped because they cannot appear, but there may be financial risks for controlling investors. Real-time take profit and stop loss trading, and the income risk can be freely monitored.

X. Flexible fund scheduling and high liquidity.

In the past 24 hours, investors have traded according to the fluctuation of exchange rate, and there is no time limit for entering and leaving the market. They can remit or remit funds to the market at any time due to the transfer of personal funds, which is extremely liquid and flexible.

T+0 mechanism, unlimited trading, two-way trading, buying up and selling down can all be profitable. The cost is low, and only the spread is charged, which is one thousandth of the transaction fee. It is not limited by the amount and currency, and is suitable for different types of participants from institutions to individuals. Free from the influence of time and space, transactions can be conducted through the Internet, telephone and service providers.

Disadvantages of speculating in foreign exchange:

Nowadays, foreign exchange transactions are generally foreign exchange margin transactions, which amplify the benefits and risks. There is only one obvious disadvantage of speculating in foreign exchange, that is, the risk is higher than other investment products. Once the operation is careless, it is very likely to cause huge losses. Note: the foreign exchange market is risky, so you need to be cautious in your investment.