Foreign exchange band trading is a technical term in the foreign exchange investment industry, and many people don't understand what it means, such as foreign exchange novices. Band trading is also an important trading strategy. Now, what is foreign exchange band trading?

Generally, foreign exchange transactions can be divided into two categories, namely, short-term transactions and band transactions. Short-term trading, also known as intraday trading, is more common. About 80% investors in China's foreign exchange market are short-term traders. The second type of foreign exchange trading is called band traders, or position traders, because band traders always take uneven positions in their accounts, but constantly reset the stop-loss range and increase and decrease positions with the change of exchange rate in the market.

According to statistics, although short-term trading accounts for 80% of China's foreign exchange market, it is just the opposite in terms of profit. About 20% investors' market profits account for as much as 90% of the total profits.

Next, I'll explain to you what foreign exchange band trading is. Band trading should be fully prepared before trading, and you should have an overall grasp and understanding of the foreign exchange market, such as the exchange rate trend for several months or a year.

Band trading requires investors to master fundamental knowledge. After preparing to predict the market trend, find a suitable starting point. At the same time, investors calculate well.

Stop loss level and subsequent market fluctuations, and resetting stop loss to protect profits need to be carefully planned in advance. Band traders should always keep entry orders at different points in their positions, and the positions of take profit and stop loss also change from time to time.

Band trading is a trading method that follows the market trend, and it is also a trading method that can obtain the greatest ability. Of course, this trading method has extremely high requirements for traders' skills, trading execution and psychological endurance.

If you are still trading frequently in the short term, you can expand your thinking to the thinking of band trading, which may help your current state and even open a new horizon for your new trading road.