At present, the trading platform used by most investors is MT4, because it can realize domestic foreign exchange, gold and crude oil trading. However, the risk of foreign exchange trading is not necessarily the problem of MT4, which may be due to the following reasons: transaction risk is the risk of outstanding claims and debts in foreign exchange settlement after exchange rate changes; These creditor's rights and debts occurred before the exchange rate changes, and were only liquidated after the exchange rate changes. Exchange rate system is the direct cause of foreign exchange transaction risk; The fixed exchange rate system shields risks, while the floating exchange rate system increases the uncertainty of future currency trends and expands risk exposure. Foreign exchange risk generally includes two factors, currency and time. If there is no exchange or conversion between two different currencies, there will be no foreign exchange risk caused by exchange rate fluctuations. At the same time, the changes of exchange rate and interest rate always correspond to the term. Without time, there would be no foreign exchange risk.
Therefore, the foreign exchange trading platform MT4 is legal, but the risk of foreign exchange investment is relatively high. Be careful when investing in foreign exchange, or you will easily suffer losses. It is also helpful to practice foreign exchange investment more.
Foreign exchange transaction is the exchange of one country's currency with another. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other.
The foreign exchange market is the largest financial market in the world, with an average daily turnover of over US$ 65,438+0.5 trillion-equivalent to more than 30 times the sum of all securities markets in the United States. Classification of foreign exchange transactions According to the nature and types of transactions, foreign exchange transactions can be divided into the following two categories: basic foreign exchange transactions that meet the real trade and capital trading needs of customers; On the basis of basic foreign exchange transactions, foreign exchange derivatives transactions are conducted to avoid and prevent exchange rate risks or for foreign exchange investment and speculative needs. The basic foreign exchange transactions belonging to the first category are mainly spot foreign exchange transactions, while foreign exchange derivatives transactions include forward foreign exchange transactions, foreign exchange selective transactions, swap transactions, swap transactions and so on.
There are two main reasons for foreign exchange transactions. About 5% of daily transaction turnover is due to companies and government departments buying or selling their products and services abroad, or having to convert the profits they earn abroad into their own currencies. The other 95% transactions are for profit or speculation.