New speculators to understand: how to open an account
1、 What is foreign exchange margin trading
Speaking of foreign exchange margin trading, first of all, what is foreign exchange trading?
Foreign exchange transaction is the process of currency exchange between one country and another country. It is embodied in the specific operation: the standardized or semi standardized transaction process between national currencies between individuals and banks, banks and banks, individuals and transaction brokers, banks and brokers, brokers and brokers.
Foreign exchange trading is the largest and most frequent form of capital flow in the world, with a daily turnover of more than US $5trillion. Since the US dollar is the de facto international reserve currency, it is generally used as the direct trading partner of other currencies after World War II. With the rise of the euro, the trading volume with the euro as the direct trading partner began to rise in the foreign exchange trading market.
Unlike other financial markets, the foreign exchange trading market has no specific location or centralized exchange. All transactions are conducted through banks, trading brokers and traditional counters between individuals, telephone or Internet. Because there is no specific exchange and the trading participants are all over the world, the foreign exchange market can operate 24 hours a day. The quotation generated by bargaining during the transaction will be transmitted through major information companies. The transmission media include software system, website platform and various trading platforms, so investors can obtain the real-time foreign exchange trading market.
2、 What kind of foreign exchange is margin trading?
Foreign exchange margin trading, also known as deposit trading, refers to a spot or forward foreign exchange trading between financial institutions and between financial institutions and individual investors. In essence, it is a bit similar to the domestic futures trading that has been developed for many years. In margin trading, the trader can only pay 0.5% ~ 20% of the deposit (margin) to carry out 100% of the amount of trading, that is, "small and broad". While the possibility of profit increases, the risk is also similarly amplified. It is really an investment method that needs wisdom and courage.
Foreign exchange margin trading originated in London in the 1980s and was later introduced to Hong Kong. In China, in the early 1990s, a group of individuals and institutions participated in such transactions, leaving a variety of profit and loss stories. As we mentioned earlier, foreign exchange margin trading is very similar to futures trading. In addition to the same margin system as futures trading, foreign exchange margin trading also has many characteristics different from futures trading:
1. The foreign exchange margin trading market is intangible and unstable. All transactions are conducted between investors, financial institutions and financial institutions, and there is no special institution like the stock exchange;
2. Unlike futures, foreign exchange margin trading involves the concepts of delivery date and delivery month. It has no maturity date. Traders can hold positions indefinitely according to their own wishes, but need to clear the overnight interest margin;
3. The scale of foreign exchange margin trading is huge and there are many participants;
4. The currencies of foreign exchange margin trading are very rich, and any internationally convertible currency may be used as a trading variety;
5. The trading time of foreign exchange margin trading is 24 hours; The special point is that the interest rate difference between various currencies should be calculated for foreign exchange margin trading, and financial institutions should pay or deduct from the customer's margin.
3、 Security issues of the platform
Platform security means fund security. The platform shall try to select dealers with strict financial supervision in the United States, Britain, Australia and other countries. Because a foreign exchange trading platform first needs to be registered in the country and subject to the supervision of domestic financial regulators.
The US regulator is the US futures regulatory commission, whose official website is: http://www.nfa.futures.org/basicnet/ , abbreviated as NFA. It doesn't matter if it's all in English. What matters is that you need to know about this website and how to query whether a foreign exchange trading platform is registered with the regulatory authorities of this country.
The name of the UK regulator is: financial conduct authority: http://www.fsa.gov.uk/register/firmSearchForm.do 。 Abbreviation: fca
The name of the Australian regulator is: Australian Securities and Investment Commission: http://www.asic.gov.au/asic/asic.nsf 。 Abbreviation: USA
Take the gvq platform in the UK as an example: its regulatory number is 220997 (any regular platform has a regulatory number, such as the same person has an ID number). Log in to the FCA website and enter the regulatory number to view the regulatory information and registration information of the platform.
4、 Find a good agent
Because China is on the verge of opening up, it is a historical trend for China to open foreign exchange margin, or it will be sooner or later for domestic banks to continue to carry out foreign exchange margin business. Foreign foreign exchange guarantee dealers cannot directly enter the Chinese market, so they can only entrust some primary agents in China or set up representative offices in China.
Looking for agents is mainly about people. There is a subtext in China's business field: the market is like a battlefield. As long as the agent is practical, the business can be successful. Don't care whether your account opening agent is a personal agent or an institutional agent. It does not look at the strength of institutions and individuals, but at the credibility of agents and the behavior of agencies and agents. What we are looking at is the legitimacy of foreign exchange traders. (do not register and open accounts directly on foreign foreign exchange trading websites! Even if you are a legal and regulated dealer, who do you call when you encounter problems in trading and when you encounter problems in cash withdrawal and withdrawal?! foreign exchange dealers face thousands or tens of thousands of customers. Agents only face dozens of customers, which can help you and deal with you. You can also dial the agent's phone at any time).
5、 Issues needing attention before opening an account
The information for opening an account is generally the ID card, address certificate and application form for opening an account. As it is a foreign trader, it only needs your scanned copy of the above information, mainly through email and other contact information. For domestic stock futures account opening, you still need to take photos, and you need your recent real photos. When scanning the ID card, try to use a copy to scan it. The scanned copy should be marked with the words "only for foreign exchange deposit account opening". Although you can rest assured that you are an honest agent, you must pay attention to these problems. Proof of address is irrelevant. If you use a credit card to deposit money, you need your credit scan. A three digit CVV security code on the back of the credit card must be hidden or eliminated.
Then you have to prepare something:
(1) A mailbox. You should register an email for contacting, checking and opening accounts. Try to use an international email, such as Yahoo! And NetEase. You can't use QQ email, Sina email and other mailboxes that are easy to steal passwords.
(2) A bank account number. For this bank account, you need to open a dual currency card at your local bank that can accept foreign currencies such as US dollars. It needs to be provided to agents and platform dealers in advance. It is mainly used to make money in the future. You first provide a bank account, which must be your own name. This account is stored in your registration information in advance. In the future, only this account and your mailbox will be recognized. When opening an account, you should try to ask the staff of the bank for the English name, English address and swift code of the bank. As long as you say that you will have US dollars transferred back from abroad in the future and need these, the bank staff will give you a small note with these things written on it, which you can use when opening an account. Don't be wrong about the swift code.
Many people always suspect that the State Administration of foreign exchange is cracking down on illegal online foreign exchange speculation. Please pay attention to the words used by the safe: cracking down, illegal and online foreign exchange speculation. The point is illegality. At present, many foreign exchange traders are legal in foreign countries, only because China's capital account has not been opened and is prohibited by the authorities, because China's capital account has not been opened. The illegal means those illegal platforms that build a fake platform on the Internet, buy an MT5 platform, operate by themselves, and take money away when the customer's account opening funds reach a certain level. Before the state did not allow foreign banks to enter China, Citibank in the United States was also illegal before China's unopened financial laws. Is it illegal to deposit our money in Citibank? Is there no guarantee? How many wealthy and high-ranking officials in China put their money in Swiss banks.
6、 Tips for novice orders
E.g. 250 USD warehouse
1： Light position trading. 0.01 hand each time, do not add positions. Find out the depth of the water here. Be familiar with the doorway. When driving, first shift to gear 1 and wait until you are familiar with it. Don't break your position in confusion. The principle is: learn to survive, accumulate funds, accumulate experience and accumulate process.
2、 Be sure to stop. Learn one order a day. If you make a mistake that day, stop trading in the real warehouse and simulate it! By the way, set a protective stop and hold it! Let profits soar in fluctuations.
3、 Novices should learn to follow the trend of the day. Novices like to watch one minute. Novices will never watch long-term trends. Then follow the trend of the day. If the daily K line of the day is up, you can try to enter multiple orders, otherwise, you can short. Trend is like tug of war. Always join the winner.
4、 Learn to live. Learn more, see more, and understand more about foreign exchange trading. This market is unlikely to make money for novices. It is impossible for a timid veteran to make money. We should constantly try to understand the mentality of market traders and do the opposite. Newcomers to the market must survive as long as possible. Because if a novice enters the market, the first few positions will explode. The first few people who can't explode have not been born on earth. Don't think you are a stock expert or a futures expert. When you come to the foreign exchange margin market, you are a complete novice. Because the foreign exchange margin traders are all fighters.
