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The essence of doing foreign exchange
Foreign exchange speculation is to make use of currency exchange rate changes in different countries to make profits. Foreign exchange trading is a financial transaction aimed at the exchange rates of different countries, so when you correctly grasp the future trend of the exchange rate of the trading currency, you may get potential profits.

For example, according to your observation of the exchange rate between RMB and USD in the market, you think that USD is undervalued relative to RMB at present, and you estimate that USD will appreciate in the future. So, you buy a certain amount of dollars in RMB in advance. If the market trend is consistent with your judgment and the US dollar appreciates against RMB, then you can sell the US dollar for RMB and make a profit. In the past, you had RMB 1, which was 0.8 USD when converted into USD. Now that the US dollar has appreciated to 1 RMB =0.6 US dollars, you can exchange 0.8 US dollars for 0.8= 1.333. . . Rmb, 0.333 more than the previous RMB 1. . . Rmb, realizing profit)

Make another inappropriate metaphor.

You bought 100 yuan lollipop. When you bought it, it was 1 yuan, so you bought 100. When you have finished buying, the store will adjust the price to 10 yuan for various reasons. You ask the boss how much it costs to sell the lollipop back to the boss, and he says 2 yuan. So you ...