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What's the difference between foreign exchange and funds?
Difference one, capital leverage. Foreign exchange often uses hundreds of leverage to amplify the funds traded by investors and increase profits. And the fund is not leveraged, how much money, how many funds to buy. The second difference is to make money by shorting. Foreign exchange is a two-way profit model, which can not only chase high, but also make money by shorting when the exchange rate falls. And funds can only make money if they buy high. Difference 3, T+0 mode. Foreign exchange belongs to the T+0 model, which can be bought and sold at any time, and the fund has regulations on how long it must be held before it can be sold. The fourth difference is the low handling fee. The foreign exchange handling fee is lower than that of the fund, and the foreign exchange charges the transaction price difference as the handling fee, and the fund may have certain taxes in addition to the handling fee. Difference 5, trading time. Foreign exchange can be traded within 24 hours outside Saturday and Sunday, while funds can only be traded at a fixed time every day. Difference six, it is not easy to control. The foreign exchange market is the largest in the world, with a daily circulation of more than one trillion dollars, which will not be controlled. The fund market is small and easy to control.