What are the characteristics of foreign exchange market
For those who are new to foreign exchange, it is necessary to understand the characteristics of foreign exchange trading, and to introduce the concepts of the characteristics of the major foreign exchange trading markets in the world. Yes, it contains a detailed explanation of the principles of foreign exchange trading. What are the characteristics of foreign exchange trading? Foreign exchange trading principle detailed explanation, hope to bring help to you.
Characteristics of foreign exchange trading
As a financial product, Waijiang investment has a broad market. The main features of foreign exchange trading are as follows.
1. High profit
Because the information of foreign exchange investment is open and transparent all over the world, investors can grasp all kinds of foreign exchange information at the first time, which is convenient for investors to invest and manage money. Moreover, compared with other investments such as stocks, the profit rate of foreign exchange transaction is higher, and the income tax is lower.
2. Flexible transaction time
Foreign exchange market generally has no specific trading place, but through the electronic network between banks, brokerage firms, enterprises and individuals. As there is no fixed central exchange, the foreign exchange market can operate 24 hours a day. Investors can flexibly arrange the trading time according to the situation and quickly respond to changes in the market.
3。 Use in the role of the rod to small broad
It is low cost and high flexibility to trade foreign exchange in the form of margin. As long as investors set up a margin trading account in the bank and deposit a certain amount of margin, the amount of trading can be enlarged by several times, so as to expand the current purchasing power and anti risk ability, and effectively increase the return on investment.
4. Flexible transaction mode and easy risk control
In most countries in the world, foreign exchange transactions can be bought up at a low level or down at a high level. That is to say, short selling and buying seals are used for risk management to ensure the safety of their investment and income. In addition, investors can set the stop loss position and the expected profit target according to the loss range they can bear.
5. Huge market space and the strongest liquidity
The target of foreign exchange investment is not a listed company, but a country. It is impossible for a country's currency exchange rate to drop to zero, so there will be no risk of price without market or price without market. According to statistics, in 2007, the daily foreign exchange volume can reach 330000 US dollars, in 200 it will reach 40000 US dollars, and in April 2013 it will reach 53 trillion US dollars. Except for the fair financial market under special circumstances. It's very difficult for someone to control the Waijiang market, so we can say that the Waijiang market is the largest financial market in the world, with the fastest circulation and the most transactions in the world.
[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk