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Introduction to foreign exchange basics

2023/2/25 15:51:33  Classification:   Participation: 5  

Introduction to rebatemeaninginforex rebateinforextrading basics What best forex rebate foreign exchange?  Written definition: Chinas current "Foreign Exchange Management Regulations of the Peoples Republic of China" Article 3 provides that foreign exchange refers to foreign rebatesinforex means of payment bestforexrebate assets that can be used for international settlement. Foreign exchange in the narrow sense refers to foreign currency means of payment used for international settlement. When this thing happens in the international arena, how to complete the payment and settlement? So, we abstract the domestic payment situation to the international payment, foreign exchange is easy to understand to put it bluntly, foreign exchange is a means of payment, it can be ready-made currency, but also in my hands already have the object of the countrys assets available for payment foreign exchange investment object exchange rate fluctuations in the securities cashback forex, we Every day we are concerned about the rise and fall of the stock price in the foreign exchange market, we are concerned about what is it? The exchange rate is also known as the foreign exchange market or exchange rate simple understanding, is the exchange rate of one countrys currency to another countrys currency, is a currency to express the price of another currency because of the different names of the worlds currencies, currency values vary, so a countrys currency to other countries currencies to form a rate of exchange, that is, the exchange rate simple understanding, the exchange rate is a countrys currency to express the price of another currency, that is, the two countries The ratio of currencies For example, 1 US dollar can now be exchanged for 6.83 yuan, then the US dollar (USD) / yuan (CNY) = 6.53, the dollar to the yuan 6.53 of this ratio, which is what we call the exchange rate The exchange rate will always fluctuate Why does the exchange rate fluctuate? Even though the global financial action is basically the same, but the actual economic situation between countries is very different from the United States financial tsunami, still in the process of recovery after the disaster China also endured the baptism of the tsunami, but the crisis did not happen directly in China itself, so the impact on us is obviously smaller. In the foreign exchange market, the strength or weakness of the RMB and the USD will be different. The strength or weakness of a countrys currency is ultimately closely linked to the fundamentals of its economy, so the differences in the fundamentals of each countrys economy determine that the foreign exchange market is bound to fluctuate. 1.4360, the integer part is a number, there are 4 digits after the decimal point pound (GBP)/US dollar (USD) = 1.6180 here, to talk about a special case some currency to other currencies may be relatively large, such as the dollar (USD)/yen (JPY) = 92.80, seems to be not 5 digits but this situation is only in this year a few years ago a The dollar can be exchanged for more than 100 yen, in the year of the financial tsunami fell to below 100 Different currency denomination methods Because the exchange rate is the ratio of the two currencies, that means that the two can be each other as the numerator denominator, such as the euro against the dollar, or the dollar against the euro in order to unify the zoning, often a currency will have their own common denomination method Direct denomination method: is a unit of foreign currency This means that the foreign currency is treated as a commodity and the domestic currency is used as a measure of value, for example, one dollar is equal to 8.27 yuan, which is the direct markup method. Indirect markup method: This means that a certain unit of domestic currency is used as a standard to calculate how many units of foreign currency should be charged, that is, the domestic currency is treated as a commodity and the amount of the foreign currency is used to represent it. The price of the national currency, acting as a measure of value such as 1 pound is equal to 1.6 U.S. dollars, for the United Kingdom, is the indirect markup method Currently, the only international exchange currency in the world is the U.S. dollar, so the major currency exchange rates are calculated using the U.S. dollar as the object of exchange usually we say the euro, referring to EURUSD, British pound GBPUSD, the Japanese yen (that is, the United States and Japan) USDJPY Because of the hegemony of the U.S. dollar The United States has gained a series of financial pricing power, in the global commodity, and financial markets to gain a dominant position, there is no currency can challenge the dominance of the dollar so, the strength of the foreign exchange market currency position, but also the reflection of the economic strength of each country Direct and indirect plate: and the dollar for direct exchange of currencies, known as direct currency exchange between non-dollar currencies, usually known as the cross plate for example, the The euro against the British pound (referred to as EURGBP), the British pound against the Japanese yen (GBPJPY), etc. Because the worlds financial dominance in the United States, the news about the trend of the dollar is the most widespread and transparent, so the transparency of doing straight currency will be better than the cross, most investors will choose straight currency as the object of investment and trading Major trading currencies and codes: Major currency symbols: CNYCNYUSD USD JPY JPY AUD EUR GBP CHF CAD HKD HKD Gold (GOLD, XAUUSD) Silver (XAGUSD) Crude Oil (OIL) (Each currency has its own unique properties and status, which we will explain specifically later) Buying and Selling Forex Banks engaged in foreign exchange trading are engaged in foreign exchange trading When, because of the different positions (sometimes the buyer, sometimes the seller), the implementation of different foreign exchange rates, divided into the bid and offer price in the direct bid method, the bid price in the front, the bid price in the back in the indirect bid method, the sell price in the front, the buy price in the back (in fact, whether the direct bid or indirect bid, where the high must be the sell price, where the low must be the buy price) For example, under the direct bid, the 1 USD is equal to 8.17-8.37 RMB, 8.17 RMB is the bid price and 8.37 RMB is the ask price. The implication is that when a Chinese bank buys or sells USD, it pays 8.17 RMB for every USD it buys; for every USD it sells, it recovers 8.37 RMB. For every USD it buys or sells, it earns 0.2 RMB. 1.50 USD is the buy price, 1.70 USD is the sell price Profit and loss calculation The basic unit of the foreign exchange contract is one lot of a lot of stocks, is 100 shares, a lot of commodity futures, is a ton of foreign exchange transactions, is 100,000 contracts The exchange rate is marked according to five digits, one ten thousandth of the fluctuation is called a point, a lot of transactions is 100,000 contracts, corresponding to a point of fluctuation is 100,000 x one ten thousandth = 10 U.S. dollars The most tradable opportunities market usually general currency intra-day fluctuations is 100-200 points, Monday to Friday 24 hours to open the market, there are many round trips, so the foreign exchange market is a very rich trading opportunities market, far more than the stock market and futures market keen on short term operation of friends, foreign exchange is the best choice The longest trading time market: foreign exchange market is the global unified Financial markets, Monday to Friday all day 24 hours a day open and usually divided into Asian plate, European plate and the United States plate why there is no American plate or African plate? This name is still in accordance with the economic strength of each continent to define, no strong economic base, there is no strong financial market, so it also shows that the global economy is now Asia, Europe, and the United States three-legged situation Specifically, the Asian plate is mainly the Japanese market, the Hong Kong market and the Singapore market, the fluctuations are not very large If China opens the foreign exchange market, I believe that the Asian plate will be on the foreign exchange market trends The European market mainly includes Frankfurt, Paris, London and Zurich market, is the second most volatile trading session of the day, time for Beijing time 2 pm - 12 pm U.S. plate is usually the most volatile time of the day the main trading time for 8 pm to 2 am European plate and the U.S. plate cross time, and is the most violent fluctuations, many investors do only such a day A wave of the market The main market opening and closing times: Wellington ..... .5:00 ....... .13:00 (New Zealand) Sydney ....... .7:00 ....... .15:00 Tokyo ....... .8:00 ....... .14:30 Singapore ..... .9:30 ....... .16:30 Frankfurt... .15:30..... Next day 0:30 London ...... .16:30..... The following day 1:30 New York ...... .22:00 ..... The next day 5:00 Margin trading and T+0 trading Forex margin trading can be considered one of the fairest and most attractive ways to invest Margin trading is that investors to banks, market makers or brokers to provide financing to foreign exchange trading GFS financing ratio is 100 times, that is to say, to give you $5, you can do up to $500 trading T+0 that day to buy can be sold on the same day, so you You can do N transactions a day Shorting and long Shorting is to see the market fall, the decision to short (sell the currency pair); long is to see the market rise, the decision to do more (buy the currency pair) Short positions are established with the buyers offer, long positions are established with the sellers offer, because of the symmetry of currency trading, you are doing more of a currency at the same time that the other currency short For example, you use 100,000 pounds for The most attractive feature of foreign exchange trading is that it can be operated in both directions, you can buy when the currency rises to profit (long), you can also sell when the currency falls to profit (short), so you do not have to be subject to the so-called bear market can not make money in the restrictions of the foreign exchange market is the most successful investment guru Soros, sniper pound, sniper Thai baht and other classic examples, are The myth of a man defeating a countrys central bank, so as long as you master the characteristics of the market, when the opportunity comes, the foreign exchange market can create a huge wealth beyond our imagination.

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