What is the difference between foreign exchange margin and foreign exchange firm offer? How to open an account?

Foreign exchange account opening/


Foreign exchange margin trading and foreign exchange firm offer trading are the two most common ways of foreign exchange investment and financing in China. Many investors who don't know about the foreign exchange market don't know the difference between the two, and don't know which way to choose. The following editor will introduce the difference between foreign exchange margin and firm offer trading to help investors know how to choose foreign exchange margin and firm offer trading.


Foreign exchange trading can be divided into foreign exchange margin trading and foreign exchange firm offer trading. Foreign exchange margin trading is what we often call speculation of foreign exchange, that is, foreign exchange external offer trading. And the foreign exchange firm offer is our foreign exchange internal trading. So, what's the difference between foreign exchange margin and firm offer? How to open an account?


First, foreign exchange margin trading


In foreign exchange trading, margin trading is the most popular investment method for investors, which is commonly used internationally. Leverage to increase trading volume. You can download the platform to trade on computers and mobile phones. Foreign exchange margin trading, the highest leverage up to 400 times, which does not need a lot of customer capital, but the income is amazing. In addition, there are two-way operation, you can buy short or short foreign exchange, no matter up or down can make money.


To sum up again, yes: usually through the network, generally through the domestic foreign exchange agents or directly to the foreign investment company website to apply for opening an account, and then deposit the funds into the trading account for trading. The biggest feature of foreign exchange margin trading is high risk and high yield. Foreign exchange margin trading belongs to leverage mode, and the maximum leverage can reach 400 times. If the investor is free to trade with us $100, under the effect of leverage, it is equivalent to trading with us $40000, which greatly increases the investor's income, but the corresponding risk will also be doubled, which is more suitable for foreign exchange margin trading Foreign exchange market has a certain understanding of the investors to trade.


To open an account, select the foreign exchange margin account opening platform, and then open an account on the official website of the platform. When the funds arrive, you can log in to MT4 platform for trading.


Second, foreign exchange firm offer


Foreign exchange firm offer trading is a trading method with Chinese characteristics, which only exists in China. If you open a trading account in a personal bank, you can make a firm offer through the Internet, telephone and bank counter. Generally, after opening an account in a bank, the characteristic of firm offer is that the risk and income are very small. The transaction fee is a little higher than that of a virtual offer. Generally open an account in a bank, such as China Merchants Bank or ICBC. The biggest characteristic of foreign exchange firm offer trading is that the risk and income are relatively small, and the transaction handling charge (point difference) is slightly larger, generally 10-30 points. If the operation is good, the annual income is generally 5% - 10%. If the capital is too small, the income may be limited.


Steps of opening an account: go to the counter of a commercial bank to apply for opening a foreign exchange account, then purchase a certain amount of foreign exchange and deposit it in the account, sign relevant agreements with the bank for online banking transactions, and then log on the trading website with personal computer to make firm offer transactions.


How to choose between foreign exchange margin and firm offer? Through the above introduction, it is not difficult to see that if the investor has a relatively large principal and pursues stable profits, he can choose foreign exchange firm offer trading; if the investor has a relatively good understanding of the foreign exchange market, has a relatively small initial capital and bears certain risks, he can choose foreign exchange margin trading.


[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

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