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Why buy American debt?
The reasons for buying US Treasury bonds are:

1, which requires investment.

National debt is a bond issued on the basis of national credit, that is, American national debt is guaranteed by the reputation of the United States. At the same time, the United States is a superpower with a developed economy. The risk of buying its national debt is small and the yield is stable. It is a relatively stable investment.

2. Avoid shrinking foreign exchange.

As the US dollar acts as the world currency, China can avoid shrinking foreign exchange to some extent by buying US Treasury bonds.

3. International strategic considerations

China holds a large number of U.S. Treasury bonds, which, to a certain extent, binds China's economy with the U.S. economy and is beneficial to China's economic development.

4. Liquidity of US Treasury bonds

The liquidity of US Treasury bonds is the best, because the financial industry in the United States is the most developed in the world, and all major financial institutions are investing in US Treasury bonds, that is, everyone holds US debt, so US debt can be easily realized in the market and can be converted into US dollars at any time.

Foreign exchange, called foreign currency in English, is a creditor's right held by monetary management organs (central bank, monetary management institution, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. Can be used when the balance of payments is in deficit.

Including foreign currency, foreign currency deposits, foreign currency securities (treasury bonds, treasury bonds, corporate bonds, stocks, etc.). ) and foreign currency payment vouchers (bills, bank deposit vouchers, postal savings vouchers, etc.). ).

All foreign currency assets owned by a country. It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts. In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit.

Various payment methods expressed in foreign currency, which are generally accepted by all countries and can be used for international settlement of creditor's rights and debts. It must have three characteristics: affordability (assets that must be expressed in foreign currency), availability (claims that can be compensated abroad) and convertibility (foreign currency assets that can be freely converted into other means of payment).

Foreign exchange is a system engaged in foreign exchange trading and speculation. With the progress of science and technology, foreign exchange quotation, inquiry, purchase, sales, delivery and settlement are all carried out through computer networks, making transactions increasingly electronic and networked. Therefore, we say that foreign exchange is an invisible market and a paperless market for computers. Learning the basics of foreign exchange requires introduction:

1 In the foreign exchange market, we are the smallest traders and participants, and we are obedient to the market, so basic knowledge is necessary. It is recommended to look at the introduction of foreign exchange trading, foreign exchange trading market, Japanese candle chart curve, super short-term master, or you can collect some information online.

Middlemen refer to major commercial banks. In the general market, their quotations are all used as the exchange rate between currencies, so we should choose a mainstream platform to be supervised by FSA or NFA, which shows that their operation and capital flow are standardized and serious, and ensure our safety. After FCA(FCA(2065 438+03)) in Britain, FSA was replaced by FCA and PRA, with the strictest supervision.

3 Brokers cannot directly quote their own exchange rates. You should be familiar with the basics of foreign exchange. Choosing a British platform will also ensure the safety of your funds.

It is very important to set stop loss and control positions when trading.