Basic knowledge of foreign exchange trading
Currency symbol of foreign exchange margin trading
Currency symbol, you must first know which currency pair to fry. What if both currency pairs are in English? These are some currency symbols.
Speculation in foreign exchange is the ratio of any two currencies, that is, the exchange rate.
Earn profits according to the increase or decrease of exchange rate ratio.
Dollar euro yen pound
Australian dollar, Canadian dollar, New Zealand dollar and Swiss franc
Knowing the name of money is a necessary foundation. For example, we need to know what foreign exchange trading is.
Prepayment: Billing Amount (Used Amount)
Available Prepayment: Available Amount
Prepayment ratio (%): percentage of available prepayment/prepayment.
(For example, 0.0 1 is 1%, and the percentage is1; 0.53 or 53%, with a percentage of 53; 1.3 1 means 13 1%, and the percentage is:131; 5.00 is 500%, and the percentage is 500; By analogy)
Balance: the balance after settlement
Net value: balance+floating profit and loss (loss is negative, profit is positive)
Net value = (balance+floating profit and loss) = (prepayment+available prepayment)
1. What is foreign exchange trading? Foreign exchange trading refers to the act of converting one country's currency into another country's currency. This should not be difficult to understand. When traveling to the United States, you must change RMB into dollars. When you go to the bank, you will convert it according to the exchange rate at that time, for example, USD/RMB =7.76, that is to say, 76 yuan RMB can be purchased to 1 USD.
2. What are selling and buying? What do you mean by empty?
Buy and sell (sell)
Specific transactions in the investment process, that is, buying and selling, or buying and selling.
That is, the appreciation/depreciation of foreign exchange.
Take AUD/USD (AUD/USD) as an example.
If the current price is about 0.8375, that is, 1 Australian dollar is converted into 0.8375 US dollars.
At this time, if you think that the Australian dollar will continue to appreciate, you can buy it at the current price? (More) AUD/USD. When AUD appreciates to 0.8420 a week later, you close your position and make a profit, that is, you earn 45 points. But if the price drops to 0.8225 after one week, then you will lose 150 points. Of course, if you think that the Australian dollar will not continue to appreciate at 0.8375, if you choose to sell (empty) the Australian dollar/US dollar, then you will earn 150 points.
Traditionally, foreign exchange gains and losses are calculated in points, and finally converted into corresponding US dollars according to the foreign exchange platform.
The smallest unit of exchange rate change-point and spread
Generally, the exchange rate is expressed by 5 digits, and the last digit changes by 1, which is the smallest exchange rate change, called 1 point. Accurate to the sixth place on the right, the sixth digit changes 1, that is, 0. 1 min.
The difference between the buying price and the selling price is called the price difference.
For example: Euro/USD buying price: 1.20096 selling price: 1.20 1 19.
The difference is: 2.3 points.
For example, the current price is 1.20 100.
Then the selling price is 1.20077 and the buying price is 1.205438+023.
The smallest unit of margin trading.
If it is a standard account, the transaction unit provided by general brokers is 1 lot, and the turnover is 65438+ million base currency.
If it is a mini account, the first-hand transaction is110 of the standard account.
For example, the actual transaction of USD/JPY is equivalent to actually buying (selling) USD/JPY 65,438+million USD.
If it is Euro/USD, the actual transaction volume is equivalent to Euro/USD worth 65,438+million euros.
Foreign exchange margin trading contract
International use? k？ 1000 USD
A thousand dollars? Represents the total amount of funds in the transaction contract.
For example, 100K contract account, that is, 100? A thousand dollars? Both accounts are 100000000 dollars.
Is this 100K account also called? Standard account?
There is also a 1K contract account, which is 1? A thousand dollars? , all accounts of 1 1,000 yuan.
Is this 1K account also called? Mini? Account, mini account
There's another one called. Professional account? It's 250 thousand, which means the amount of money is 250 thousand dollars
Leverage of foreign exchange margin trading
General brokers will provide leverage ranging from 10 to 400 times, and the margin requirement for 100 times leverage is 1%. And so on. Leveraged margin refers to the ratio of the funds you overdraw to the minimum margin you need to trade a single order.
Judging from the internationally accepted proportion, it is 10 -500 times.
10 times leverage, margin = 10%, that is to say, you need to pay 10% of the total contract funds as a guarantee when billing transactions.
50 times leverage, margin =2%, that is to say, you need to pay 2% of the total contract funds as a guarantee for billing transactions.
100 times leverage, margin = 1%, and only need to bear 1% capital guarantee when billing.
200 times leverage, margin =0.5%, you only need to bear a single order of 5 ‰.
400 times leverage, margin =0.25%, you only need 2.5 thousandths to bill.
For example, if the transaction is EUR/USD, the actual transaction volume is equivalent to EUR/USD worth 65,438+million euros.
For example, the current price is 1.20 100.
Then 65438+ EUR/USD of one million euros =12.05438+USD 0 million (120 100 USD).
Leverage 400 times, margin =0.25%, billing only needs 2.5‰.
Only the deposit is about $300 (300X400= 120000).
In other words, the first-hand euro/dollar transaction requires a margin of around $300.
0. 1 lot: about $30.
0.0 1 lot is about $3.
Reasons for foreign exchange transactions
1. Trade and investment: importers and exporters pay in one currency when importing goods, and charge in another currency when exporting goods. This means that they receive and pay in different currencies at the time of settlement. Therefore, they need to convert some of the money they receive into money that can be used to buy goods. Similarly, a company that purchases foreign assets must pay in the currency of the relevant country, so it needs to convert its own currency into the currency of the relevant country.
2. It is speculated that the exchange rate between the two currencies will change with the change of supply and demand between the two currencies. Traders can make a profit by buying a currency at one exchange rate and then selling it at another more favorable exchange rate. Speculation accounts for the vast majority of transactions in the foreign exchange market.
3. Hedging: Due to the exchange rate fluctuation between two related currencies, companies (such as factories) with foreign assets may suffer some risks when converting these assets into local currency. When the value of foreign assets denominated in foreign currency remains unchanged for a period of time, if the exchange rate changes, the value of such assets will be converted into domestic currency, which will generate profits and losses. Companies can eliminate this potential profit and loss by hedging. This is the execution of a foreign exchange transaction, and the transaction result just offsets the gains and losses of foreign currency assets brought about by exchange rate changes.