Similarities between foreign exchange and crude oil trading:
Trading hours: 24-hour uninterrupted trading around the world.
Both foreign exchange and crude oil are traded by margin. That is, investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers for foreign exchange transactions, that is, to enlarge the trading funds of investors.
Leveraged trading is used in both foreign exchange and crude oil trading. The financing ratio (transaction leverage) is generally determined by banks or brokers. The greater the financing ratio (transaction leverage), the less money customers need to pay and the greater the risk.
The international financing multiple (transaction leverage) is between 20 and 400 times. The standard contract in the foreign exchange market is 6,543,800 yuan per lot (referring to the base currency, that is, the previous currency of the currency pair).
If the leverage ratio provided by the brokerage firm is 20 times, then the buyer and the seller need a deposit of 5,000 yuan (if the trading currency is different from the account deposit, it needs to be converted) (that is, 20 * 5,000 = 65,438+10,000); If the leverage ratio is 100 times, the margin required by the buyer and the seller is 1000 yuan (i.e. 100 * 1000 = 65438+ ten thousand).
The reason why foreign exchange and crude oil brokers dare to provide a larger financing ratio is because the daily average volatility of the market is very small, only about 1%, and the market is continuously traded. With perfect technical means, banks or brokers can completely resist market fluctuations with less margin from investors without taking risks themselves.
The difference between foreign exchange and crude oil trading:
Foreign exchange margin trading funds should be remitted abroad through banks or brokers, and funds can be entrusted to brokers (with great risks).
Spot (crude oil) transactions can be approved by the state, and the funds are managed by domestic third-party banks, which is relatively safe.
The daily fluctuation of foreign exchange price is small, and the fluctuation of crude oil price is large.
Foreign exchange varieties are not conducive to analysis, and crude oil varieties are single.
The daily turnover of the foreign exchange market is greater than that of crude oil.
Most foreign exchange dealers are abroad, mostly in the United States; Most crude oil traders are fighting in Chinese mainland and Hongkong. The change of crude oil price is mostly caused by the relationship between supply and demand of crude oil itself and the influence of international political relations.
Examples of foreign exchange transactions
Sell USD/JPY contract
The face value of a USD/JPY contract is USD 65,438+000,000, the bid spread is 2.6 points (65,438+0 points equals 0.065,438+0 fluctuation, and the minimum price fluctuation range is 0.0065,438+0), and the margin requirement of each contract is 65,438+0.
Customers believe that the dollar is overvalued and will depreciate against the yen in the future. In order to cope with this situation, the customer intends to sell the USD/JPY contract.
USD/JPY quotation 105.300/326. Customers sell 5 lots at 105.300, and need a deposit of $5,000. Customers need a deposit of at least $65,438+$0,000 for each transaction.
The dollar did weaken against the yen, so the price dropped to 104.270/296. For this information, the customer's reaction was to close the position, so he bought 5 lots at 104.296. The customer gets 1.004 or 100.4 points in the transaction (105.300- 104.296).
If you sell it at 105.300 and buy it at 104.296, the profit of 1.004 dollars is: (105.300-104.296) */kloc-0. Therefore, the total profit is USD 4865438+USD 02.20 (962.44 * 5 contract).
Detailed description:
(1).5 USD/JPY selling price105.300–buying price 104.296:+ 100.4 points.
(2). ((105.300-104.296) *100000)/104.296: +962.44 USD per contract.
(3).962.44 USD *5 (contract quantity): 4,865,438 USD +02.20 gross profit.
The above calculation does not include commission. If the customer does not close the position on the same day, but continues to hold the position until the next trading day, the overnight interest adjustment will be implemented.
Buy a GBP/USD contract
The face value of a GBP/USD contract is 65,438+000,000, the bid spread is 2.8 points (65,438+0 points equals 0.0000 1 fluctuation, and the minimum price fluctuation is 0.0000 1), and the margin requirement for each contract is 65,438+0.
Customers believe that the pound is undervalued and will appreciate against the dollar in the future. In view of this situation, the customer decided to buy the GBP/USD contract.
The GBP/USD quotation is 1.50420/448. The customer buys 3 lots at the price of 1.50448, of which * * * needs a deposit of $4,500, and the customer needs a deposit of at least $65,438+$0.500 per lot.
The price of GBP/USD fell to 1.50000/028. The customer chooses the stop price to deal with this information, so he sells 3 lots at the price of 1.50000. So he lost 0.00448 or 44.8 points per hand (1.50448- 1.50000).
If you buy at 1.50448 and sell at 1.50000, the loss of 0.00448 USD is: (1.50448-1.50000) *1. Therefore, the total loss is $65,438+$0,344 (448* 3 contract).
Detailed description:
(1).3 Bid Pound/USD Selling Price1.50448–Buying Price 1.50000:-0.00448.
(2). (1.50448-1.50000) *100000 =-448 USD: 455 USD per contract.
(3).-448 USD *3 (contract quantity) =-65438 USD+0,344 USD: 65438 USD+0,344 gross loss.
The above calculation does not include commission. If the customer does not close the position on the same day, but continues to hold the position until the next trading day, the overnight interest adjustment will be implemented.
Examples of crude oil trading
CFD contract for the sale of American crude oil
The face value of an American crude oil CFD is 65,438+0,000 barrels (42,000 gallons), the bid spread is 6 cents, the minimum variation unit is 0.065,438+0 or 65,438+0 cents, and the margin requirement for each contract is 65,438+0,500 dollars.
Customers believe that the price of crude oil is overvalued and will soon fall. In view of this situation, the customer decided to sell the American crude oil contract for difference. The price of US crude oil is 55.45 USD /5 1. If a customer sells 5 lots at 55.45 USD, a deposit of 7,500 USD is required, and each lot needs at least 65,438 USD +0.500 USD.
The price of crude oil dropped to $54.99 /05 (54.99–55.05). The customer's response to this information was to close the position and buy five lots of American crude oil CFD at the price of $55.05, so the customer made a profit of $0.4 per barrel per contract. If each contract is 1000 barrels, then the fluctuation per cent is equal to 10 dollars, (1000 barrels * 1 point = 10 dollars), in this case, each contract customer will get 40 points or 400 dollars in profit. The total profit is 2000 dollars (400 * 5 = 2000 dollars).
Detailed description:
(1). Buy 5 lots at 55.45–sell 5 lots at 55.05: +40 points.
(2) Each contract is 1000 barrels *0.0 1 (minimum change unit): +$ 10/ point.
(3).40 points * $ 10*5 (contract quantity): +2000 USD gross profit.
The above calculation does not include commission. CFD contracts are based on futures contracts, and the quotation at maturity is not affected by the interest rate of forward day deposits and loans.