Foreign exchange market advantage
1, two-way transaction, more opportunities to make money. Stock investment can only make money if it goes up, while foreign exchange can buy up or down, as long as it chooses the right trading direction. In the stock market, the time of short market is much longer than that of long market, and investment opportunities are not easy to grasp, so the stock market is not a market with long-term investment value, which is also the reason why many stock market investors lose money.
2.24-hour all-weather trading. It starts at 6 am (Beijing time) every Monday and ends at 4 am on Saturday. You can buy and sell at any time. The stock market can only be traded at certain times of the day, usually from 9: 30 am to 3: 30 pm. When trading foreign exchange, you can set a target stop-loss and profit-taking price to ensure the minimum loss and the maximum gain.
3. Foreign exchange trading is most beneficial to China investors. The prime time for foreign exchange trading is 8 pm Beijing time 12 pm. This period is the daytime in the European and American markets, and it is also the time when the market transactions are the most active and the exchange rate changes the most. During this period, China investors have plenty of time to invest in foreign exchange transactions.
4. Less investment and low starting point. You can open an account for foreign exchange speculation with a minimum investment of USD 30 (equivalent to about RMB 190 yuan). In the process of foreign exchange speculation, the minimum turnover is 0.0 1 lot, and the minimum margin is 6 dollars. Successful investors can get several times the profit from their investment within one year.
The market is objective and fair, and it is not easy to be manipulated. The daily turnover of the foreign exchange market is $4 trillion. With an advanced and scientific online trading platform and open market and data, it is the most transparent market.
6. Foreign exchange is a free and convenient investment method. As long as you have a computer and connect to the Internet, you can buy and sell your own business anytime and anywhere, which is suitable for young people who like to work independently and freely.
7. Foreign exchange transactions are conducted in the form of margin, which can be large or small. According to statistics, one third of American billionaires are successful in foreign exchange investment. For example, Soros, Buffett and others are the most classic legends of successful foreign exchange speculation, ranking among the best in the world rich list.
8. "Foreign exchange margin trading" is to use the principle of financial leverage to operate funds in the foreign exchange market by expanding the credit line. At present, the leverage of foreign exchange margin trading can reach 200 times of the principal, and the investment of 1000 dollars can make a transaction of 200 thousand dollars. Margin trading is a double-edged sword. If risk management is not done well, the chances of investors losing money are as great as their profits. At present, foreign exchange margin trading is a popular investment transaction.
9. Trading strategies can be released at any time according to market conditions, which is extremely flexible. Even if the direction is wrong, stop loss and backhand immediately, the loss is limited, and the profit is still extremely huge.
10. There are thousands of stocks in the stock market, so it will be very difficult to choose stocks. In the foreign exchange market, currency combinations are very limited, which allows you to concentrate on these currency combinations, analyze them at low cost, and quickly grasp their pulse.
1 1. Foreign exchange transactions can best meet the needs of technology investors. Different from stock and futures investment, the trend of money is more regular, and it is easier to make profits with technical analysis. A large number of economic data will be published regularly, which is also convenient for investors to make fundamental analysis. It is easier to grasp the trends of different countries than to analyze the changes of companies in the stock market. The operation of a country is usually more stable than that of a company, which means it is easier to predict the direction of economic development.
12. The foreign exchange market is highly liquid, and the T+0 system is implemented, which is easy to cash. For investors, whenever and wherever any news happens, investors can respond immediately. Investors can also flexibly plan the time of entry or exit. Compared with the foreign exchange market, the scale of other financial markets is much inferior, such as poor liquidity, such as the futures market is difficult to clinch a deal, and the price is easy to jump and difficult to grasp. The foreign exchange market is always liquid and can be traded at any time. The foreign exchange real-time quotation system can ensure that all market orders, limit orders or stop-loss orders are completely closed.
Factors affecting exchange rate in foreign exchange market
Changes in the international and domestic political situation have a great influence on the exchange rate. When the situation is stable, the exchange rate is stable. When the situation is turbulent, the exchange rate falls. We need to pay attention to international relations, political party struggles and important government officials.
economic situation
The comprehensive effect of all aspects of a country's economy is the most direct and main factor affecting its currency exchange rate. Among them, we mainly consider the level of economic growth, balance of payments, inflation and interest rates.
Military dynamics
War, local conflict, etc. It will cause a sense of insecurity in a certain region, which will have a negative impact on the exchange rates of related regions and weak currencies, but will be beneficial to the exchange rates of currencies far away from the countries where the incident occurred and traditional safe-haven currencies.
Government and central bank policies
The government's fiscal policy, foreign exchange policy and central bank's monetary policy play a very important role in the exchange rate, sometimes decisive. If the government announces the devaluation or appreciation of the country's currency; Central bank's interest rate fluctuation, market intervention, etc.
Market psychology
The psychological expectation of foreign exchange market participants seriously affects the trend of exchange rate. For the appreciation or depreciation of a currency, the market often forms its own views. When an understanding is reached, the exchange rate will change within a certain period of time. At this time, exchange rate fluctuations may be completely divorced from fundamentals or central bank intervention is ineffective.
Speculative trading
With the acceleration of financial globalization, the international hot money pouring into the foreign exchange market is more and more huge. These funds are sometimes controlled by some speculative institutions. Because of its huge trading volume and hedging, it sometimes has a far-reaching impact on the exchange rate trend. For example, the Quantum Fund blocked the pound and Thai pearls, causing their exchange rates to depreciate sharply in a short time.
emergency
Some major emergencies will affect the market psychology, thus changing the exchange rate, and the degree of the result will also have an impact on the long-term change of the exchange rate. For example, the 9 1 1 incident caused the dollar to depreciate sharply in a short time.
First, the influence of political factors on exchange rate.
Because the foreign exchange market is mainly composed of liquid assets, the daily turnover of the international market exceeds 65,438+0 trillion US dollars, which is much more sensitive to political factors than the stock market and bond market. When faced with risks, international speculators quickly switch from one currency to another in order to avoid risks, thus further increasing the volatility of the foreign exchange market.