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Why does the exchange rate rise and fall when speculating in foreign exchange? Is it the same as the rise and fall of stocks?
The same is true of foreign exchange transactions. Only when more people buy will it rise, and when more people sell it will it fall. We are a single product. Only when there are more people who need this stock will it go up. On the contrary, if there is an oversupply, the stock will fall. In the foreign exchange market, you buy a pair of currencies, for example, EURUSD, which exist together. Compared with this pair of currencies, if more people buy euros, the euro will rise, and if more dollars are sold, the dollar will fall. On the contrary, if more people buy dollars, the euro will fall. In the final analysis, it is also determined by a demand relationship. The more people need dollars, the more dollars will naturally go up. If the demand for the euro increases, the euro will rise, but it is not equal to zero. When it is equal to zero, the country does not exist.