1. The capital scale is relatively small. Compared with institutional investors, individual investors have smaller funds, so the transaction amount of individual foreign exchange business is relatively small. This also means that the risk of individual investors is relatively small, but it also means that their income is relatively limited.
2. Flexible trading hours. Unlike the stock market, the foreign exchange market is a global market with a trading time of 24 hours. Individual investors can trade at any time within 24 hours according to their own schedule, which greatly improves the flexibility of personal foreign exchange business.
3. The information acquisition cost is low. In the Internet era, individual investors can easily obtain real-time market information and the latest information of the foreign exchange market through various channels, which greatly reduces the cost of obtaining information for individual investors, and makes it easier to obtain market information and understand market changes.
4. Limited risk control capability. Compared with institutional investors, individual investors have weaker risk control ability. Because individual investors have less trading funds, they may not be able to take effective risk control measures in time in the face of drastic market fluctuations, resulting in losses.
5. The technical threshold is high. Compared with other financial markets, the technical threshold of personal foreign exchange business is relatively high. Individual investors need to have certain financial knowledge and skills in order to better understand the market conditions and conduct effective trading operations.
In a word, personal foreign exchange business is a form of financial transaction with high flexibility and relatively high threshold. When conducting foreign exchange transactions, individual investors need to pay attention to controlling risks and constantly improve their technical level and financial knowledge in order to obtain better return on investment.