Shulou(Shulou.com)06/03 Report--

Among all kinds of investments, foreign exchange margin can be regarded as one of the fairest and most attractive ways of investment.

Margin trading is when investors trade foreign exchange with financing provided by banks, market makers or brokers. In general, the financing ratio is more than 20 times, that is, the funds of investors can be magnified 20 times to trade. The greater the proportion of financing, the less money customers need to pay. for example, the margin financing ratio provided by dealers is 400 times, that is, the minimum margin requirement is 0.25%, and investors can trade as much as $10000 as long as $25, making full use of the leverage of small to big.

In addition to the magnification of funds, another most attractive feature of foreign exchange margin investment is that it can operate in both directions. You can buy at a profit when the currency is rising (be long) or sell at a profit when the currency is falling (short). As a result, you do not have to be restricted by the inability to make money in the so-called bear market.

Make a profit in the market

Various currency combinations are constantly changing due to political and economic reasons, sometimes great changes, so that investors can also get the opportunity to make a profit. For example, the yen fluctuates between 0.7% and 1.5% daily, and investors can make a profit by buying or selling. All transactions are completed in an instant, and the trading strategy can be issued at any time according to the market situation, which is extremely flexible, even if you see the wrong direction, immediately stop the loss and backhand, the loss is limited, and the profit is still huge. Therefore, foreign exchange margin is the most flexible and reliable way of investment.

Basic knowledge of foreign exchange margin trading

Currency name

Common currency code

Us dollar USD Singapore dollar SGD

Euro EUR Dutch guilder NLG

Japanese yen JPY Finnish Mark FIM

Sterling GBP Thai baht THB

Swiss franc CHF Swedish kronor SEK

Australian dollar AUD Danish kroner DKK

New Zealand dollar NZD Norwegian kroner NOK

Canadian dollar CAD Austrian shilling ATS

Hong Kong dollar HKD Philippine peso PHP

French franc FRF Spanish peseta ESP

Italian lira ITL patacas MOP

Belgian franc BEF Deutschmark DEM

Exchange rate display

In the international market, the exchange rate is shown in five digits, such as EUR/USD 1.0653

USD/JPY 117.65

GBP/JPY 193.03

Changes in the exchange rate

The minimum change in the exchange rate is the change in the last digit (that is, a change of 1 point), such as:

The minimum change in EUR/USD is 0.0001

The minimum change of USD/JPY is 0.01.

Quotation

All quotations are divided into direct quotes and indirect quotes, such as

The currencies of direct quotation include: EUR/USD, GBP/USD, AUD/USD, NZD/USD.

The currencies of indirect quotes include: USD/JPY, USD/CHF, USD/CAD.

If the quotation of EUR/USD is 1.0653, that means the exchange rate of 1.0653 dollars per euro

The USD/JPY quotation is 117.65, which means the exchange rate is 117.65 yen per dollar.

The buying and selling prices of foreign exchange margin are determined by the bank or the broker, and the customer decides the buying and selling direction. For example, the dealer EUR/USD quotation is generally shown as 1.0652 euro 57, which means that the broker is willing to buy your euros at 1.0052 and sell euros to you at 1.0057. At this time, the price difference (spread) between buying and selling is 5 points. For investors, the smaller the spread is, the smaller the transaction cost is, and the greater the profit opportunity is. Engaging in foreign exchange margin trading and choosing foreign exchange dealers to open foreign exchange accounts also need to be chosen very carefully.

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