Foreign exchange has unconsciously become the third largest investment and financial product in China after stocks and futures, and its rapid rise and spread is far shorter than that of stocks and futures. The reason why foreign exchange is so popular with investors is that it has the characteristics of high profit, high return and high short-term income. Although it is accompanied by high risks, it is often easy to be ignored by investors. Foreign exchange speculation requires some knowledge to avoid risks and obtain higher profits. Rash entry into the market will only make the people involved bleed and even lose their wealth. Therefore, the preparation must be in place. The first thing you need to master is the basic principle of foreign exchange trading, which can be traced back to foreign exchange trading in banks. At first, some people wanted to make use of the changes in the exchange rates of domestic and foreign currencies to earn the difference. For example, when someone had 65000 yuan, when the exchange rate of RMB against the US dollar was 6.5, they changed it into 10000 dollars, and then when the exchange rate was 6.6, they converted it into 66000 yuan, so as to earn 1000 yuan of the difference, This is the basic principle of foreign exchange trading, but at the same time, we see two shortcomings:
First of all, it requires a lot of funds. Only 65000 yuan can earn 1000 yuan. If you do any business, 65000 yuan can not only earn 1000 yuan, which is very overqualified. Secondly, it takes a long time. We observe that it takes a long time for the exchange rate of RMB against the US dollar to rise from 6.5 to 6.6. The general calculation method of exchange rate is that there are four decimal places behind it. Therefore, we believe that this is an increase of 1000 points, which is equivalent to a gain of only 1 yuan per point. The shortcomings of the above two aspects alone are enough to make many people afraid. The basic principle of foreign exchange speculation we are talking about here is the above method. After understanding the principle, we will look at several concepts that need to be mastered for foreign exchange speculation: leverage, point spread and margin trading. When we talk about the principles of foreign exchange trading of banks, we say that high capital is required, exchange rate fluctuations are relatively small, and it is difficult to make profits. But at this time, if we give a lever to foreign exchange trading, we will expand it by dozens or hundreds of times on the original basis, such as giving a 100 times lever to banks' foreign exchange trading.
Then the profit obtained is 10000* (6.6-6.5) *100=100000 yuan. In the same case, such a high profit can be obtained. This is the principle of margin trading, that is, foreign exchange trading is also used. Then through the foreign exchange platform to participate in trading, there will be an invisible 100 times leverage in it, so when we want to earn 1000 yuan. It only needs 650 yuan, or it only needs to increase from 6.5000 to 6.5010 in the case of 65000 yuan. Such a high profit is the charm of foreign exchange margin trading. The point spread means, for example, that when you convert 6.5000 into US dollars and buy and sell through the foreign exchange platform, the actual price is 6.5003. These three points are the difference, that is, the handling fee of the foreign exchange platform. Of course, this is not worth mentioning for foreign exchange margin trading. It can be seen that the advantage of foreign exchange speculation is that it requires less funds and makes quick profits.
The following are some operations that need to be mastered in foreign exchange speculation: instant trading, foreign exchange account opening. The most important advantage of speculation in foreign exchange over foreign exchange trading in banks is that it can be traded in real time. Profits can be made without waiting for the next day. This is also an advantage over stocks. Opening a foreign exchange account is the most important step in foreign exchange speculation. It is very important to choose a formal foreign exchange platform with a low margin. Generally, the choice of a platform for opening a foreign exchange account depends on whether it is subject to formal supervision, whether the margin is moderate, and whether the trading software is an MT5 platform. At present, the foreign exchange account opening platforms favored by domestic investors mainly include ofx platform, FXCM platform, abc123 platform and KVB platform. Other unnamed investors are advised not to take risks.
The above is the knowledge that foreign exchange speculation needs to master. If you want to deeply understand and participate in the transaction, you can first download the simulation foreign exchange speculation software to conduct risk-free foreign exchange transactions, so as to have a more thorough understanding of foreign exchange transactions in combination with theoretical knowledge.
