1 What is foreign exchange trading? Foreign exchange is a currency exchange for trade between two countries. For example, if country A needs to go to country B for purchasing and traveling, it must convert its own currency into country B's currency, which is the most common foreign exchange transaction. Bank foreign exchange transactions conform to the above explanation, that is, investors convert their own money into foreign currency and then make profits according to the change of exchange rate.
Online speculation in foreign exchange: refers to trading with the foreign exchange market through electronic trading platform through one's own judgment on the exchange rate. For example, when the euro/dollar exchange rate is 1.3000, investors think that the exchange rate will rise in the future, and then take out certain funds as deposits, and then make corresponding judgments. If the trend really goes up, they can make a profit. If investors think that the exchange rate will fall in the future, they can take out some deposits to short the exchange rate. Because online foreign exchange speculation has leverage of 100 or 200 times, investors can earn a certain profit through the exchange rate with only a little money.
Two spreads and commission spreads are the fees that investors need to pay when they participate in foreign exchange transactions. Whether it's participating in foreign exchange trading in banks or speculating in foreign exchange online, it's almost the same. For example, the current euro/dollar price 1.3000, the investor's buying price 1.3002, and the investor's selling price 1.2998. This fee is paid by banks or foreign exchange dealers. Commission is the fee that investors have to pay after paying the price difference when they participate in foreign exchange transactions. Generally speaking, they only need to pay the spread to participate in foreign exchange transactions through primary agents, but they need to pay extra commissions through some small regional agents.
Leverage is the leverage that the foreign exchange platform gives investors when they participate in online foreign exchange speculation. With leveraged trading, investors can participate in foreign exchange transactions with less capital, and the profit and loss of investors can be enlarged by 100 or 200 times. Leverage is the core knowledge of forex beginners. Only by understanding the principle of leverage can we be familiar with the basic principles of foreign exchange trading.
4 foreign exchange platform the foreign exchange platform is the banker chosen by investors when speculating foreign exchange. If investors want to trade foreign exchange deposits with banks, they must trade through intermediary platforms. The foreign exchange platform is an intermediary platform, and it is also a foreign exchange platform for collecting customer spreads.
5 Opening a foreign exchange account If investors want to conduct foreign exchange transactions, they must first open a foreign exchange account and then remit the funds to the foreign exchange platform. After the platform receives the customer's funds, it will deposit the funds into the foreign exchange account opened by the investor, and then the customer will start his own foreign exchange speculation career.
Of course, these are just the most basic knowledge. If you want to do a good job in foreign exchange trading, it is definitely not enough to know only these basic knowledge. You can read some introductory books such as Introduction to Gold Speculation and Foreign Exchange Speculation, Japanese Candle Map Technology, Super Short-term Master, etc. You can also collect some information or e-books online. The website of FXCM Yu Hui International also has free e-book downloads and some foreign exchange trading video tutorials. You can read and study more, and don't rush to do it.