Generally speaking, foreign exchange refers to foreign currency or various means of payment expressed in foreign currency, which is used for international settlement of creditor's rights and debts. Foreign exchange margin is a kind of financial derivatives. It is a financial derivative that invests a certain proportion of funds in the foreign exchange market, trades in various currencies, and conducts value-added transactions hundreds or even hundreds of times in the direction of exchange rate fluctuations, also known as leveraged foreign exchange. Margin foreign exchange came into being in the 1970s.
Foreign exchange margin has the characteristics of futures, also known as currency futures. It is a futures contract based on foreign exchange and the first variety of financial futures. Mainly used to avoid foreign exchange risk, that is, exchange rate risk.
Foreign exchange margin trading, also known as contract spot foreign exchange trading, margin trading and false trading, refers to that investors and financial companies (banks, dealers or brokers) who specialize in foreign exchange trading sign contracts to buy and sell foreign exchange on behalf of customers, pay a certain percentage (generally not exceeding 10%) of the trading margin, and buy and sell foreign exchange at a certain financing multiple of 654.38 million, hundreds of thousands or even millions of dollars. Therefore, this kind of contract transaction only makes a written or verbal commitment to a certain price of a certain foreign exchange, and then waits for the price to rise or fall before settling the transaction, so as to gain profits from the changing price difference, and of course bear the risk of loss. Because this kind of investment needs funds more or less, it has attracted many investors to participate in recent years.
Advantages and advantages of foreign exchange margin:
1. margin trading, make full use of the leverage principle, and make it small and broad.
2. Foreign exchange margin trading can be operated in both directions, which is very flexible. Investors can be bullish or bearish, so that the exchange rate of the currency will fluctuate within one day. Based on the principle of two-way operation, investors can not only buy at a low price and sell at a high price for profit; You can also sell at a high price and then buy at a low price to make a profit. These two characteristics are very similar to futures trading.
3.24-hour and T+0 trading modes, foreign exchange margin trading can be carried out 24 hours (except for the global market closure on weekends). Moreover, the T+0 model also makes investors' transactions very casual and convenient. Investors can enter the foreign exchange market for trading at any time, and investors can change their investment strategies at will.
4. Foreign exchange margin trading has no expiration date, so investors can hold positions indefinitely. Of course, investors must first ensure that there are enough funds in their accounts, otherwise they will face the risk of being forced to close their positions if the amount of funds is insufficient.
5. Investors choose a wide range of currencies when trading foreign exchange margin, and all convertible currencies can become trading varieties.
Foreign exchange margin trading appears in the form of contract, and its main advantage lies in saving investment amount. When buying and selling foreign exchange by contract, the investment amount is generally not higher than 5% of the contract amount, but the profit and loss are calculated according to the total contract amount. The amount of a foreign exchange contract is determined according to the type of foreign currency. Specifically, the amount of each contract is 1250000 yen, 62500 pounds, 125000 euros, 125000 Swiss francs, and the value of each contract is about 100. The amount of each contract in each currency cannot be changed according to the requirements of investors. Investors can buy and sell several or dozens of contracts according to their own margin or margin. Under normal circumstances, investors can buy and sell a contract with a margin of $65,438+0,000. When foreign currency rises or falls, investors' profits and losses are calculated according to the contract amount, that is, 654.38 million US dollars.
The so-called foreign exchange margin trading refers to signing a contract with a designated investment bank, opening a trust investment account, depositing foreign exchange margin as a guarantee, and the investment bank sets the credit operation limit. Investors are free to buy and sell the equivalent spot foreign exchange within the quota, and the profits or losses arising from the operation will be automatically credited or deducted from the above investment account. Therefore, small investors can obtain a larger trading quota with less funds, enjoy the same foreign exchange trading purposes as global capital to avoid risks and create profit opportunities in exchange rate changes.
Of course, if you don't want to spend time learning relevant investment knowledge and don't have time to sit in front of the computer all the time, you can also join some excellent car calling platforms. On these platforms, a group of trading experts with considerable trading experience at home and abroad will often gather, and their trading instructions can be synchronized into your account through platform technology. For example, a well-known "trader" in China is an online call platform focusing on the global foreign exchange market. It only needs to register users to enter as a strategist or investor, and then perform its duties. "Strategists" can share trading instructions in their trading accounts on the platform; Investors can also leave the computer after setting the documentary rules, and traders will directly push the trading instructions shared by strategists to the trading account of investors, so as to achieve complete synchronization between them. Among the "traders", we make it easy for investors to receive trading instructions shared by strategists through advanced internet technology. At the same time, in order to help investors find satisfactory strategists, Trader has set up a comprehensive ranking system. Investors can rank strategists according to fields including "yield", "winning rate" and "average daily turnover", and then investors can go to the separate home page of each strategist to view their trading statistics. "Trader" has established a complete benefit sharing mechanism. By sharing their own trading instructions, strategists can get corresponding cash income according to the number of times investors follow the instructions, and investors can also get trading income according to the trading instructions shared by trading experts.
Characteristics of foreign exchange margin:
1, the investment cost is low, less than 10% of the actual investment!
2, two-way trading investment, both ups and downs have profit opportunities!
3, the profit is high, and one day the profit may more than double!
4, the risk is controllable, preset price limit and stop loss point!
5. The funds are flexible and can be withdrawn at any time!
6, global 24-hour trading, there are many opportunities to make a profit!
7, the handling fee is low, less than one thousandth!
8, the global daily trading volume exceeds one trillion dollars, which is not easy to be manipulated!
9, high transparency, all markets, data and news are open!
10, fast trading speed, real-time foreign exchange trading in most cases! ,
1 1, foreign exchange margin is an easy investment, and the main factors of profit can be described as experience, information and luck. Foreign exchange is a means of payment expressed in foreign currency for international settlement. This means of payment includes credit instruments and securities expressed in foreign currency, such as bank deposits, commercial bills, bank drafts, bank checks, foreign government treasury bills and their long-term and short-term securities.
The International Monetary Fund defines foreign exchange as: "Foreign exchange is the creditor's rights held by the monetary authorities in the form of bank deposits, treasury bonds, long-term and short-term government securities, etc. Can be used when there is a deficit in the balance of payments. " Currency dollar yen pound euro Swiss franc Canadian dollar Australian dollar New Zealand dollar dollar symbol USDJPYGBPEURCHFCADAUDNZD