Secondly, no matter whether you are only managing money personally or at home, individuals can pursue higher income, while family financing is more about avoiding risks and then income. Another is the amount of your own free time. The time and energy that can be used for investment determine what kind of venture capital you choose. The best investment is portfolio investment, which can spread risks. There is a commonly used "three-three principle", one-third of the money is used for circulation and emergency, and one-third is used for long-term low-risk investments, such as national debt and dividend insurance. One-third of the money is invested in short-term venture capital, such as spot, futures, stocks, gold and foreign exchange. You can adjust the specific proportion according to your risk tolerance and expectation of income ~
First, financial management refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of finance.
Financial management can be divided into corporate financial management, institutional financial management, personal financial management and family financial management. Financing channels include bank financing, securities company financing, insurance financing and investment company financing. And investment channels include speculation, funds and stocks. Hedging refers to the behavior of foreign exchange traders to avoid or eliminate the risk of exchange rate changes through spot foreign exchange transactions and forward foreign exchange transactions. Hedging is only to eliminate or avoid foreign exchange risks and minimize the losses caused by foreign exchange risks, not to profit from foreign exchange risks.
Second, if the foreign exchange assets and liabilities of commercial banks are unbalanced, it is an unbalanced position. Whether foreign exchange assets are greater than foreign exchange liabilities and there are long positions, or foreign exchange liabilities are greater than foreign exchange assets and there are short positions, there is a danger of suffering losses for no reason. In the case of multiple positions, if the spot exchange rate of foreign exchange representing its assets continues to fall, its asset value will become smaller and smaller, and wealth will disappear bit by bit; In the case of short positions, if the spot exchange rate of foreign exchange indicating its liabilities keeps increasing, the value of its liabilities will become larger and larger, and the debt burden will become heavier and heavier. This foreign exchange risk is not inevitable, but can be cleverly avoided. In the case of multiple positions, the loss can be minimized by selling the forward currency used to express the currency of your assets.
For example, an American resident will receive 2000 pounds in three months. The current spot exchange rate is-1= USD 2.00. According to this exchange rate, the pound after three months can be converted into 4000 dollars. However, the exchange rate of the pound showed a downward trend. If the spot exchange rate of British pound after three months is-1 = $ 1.50, then 2000 pounds is only worth $3000, and Americans have lost $ 1, 000 for no reason. If the forward exchange rate of the three-month pound is1= $1.90, Americans can sign a contract to sell the three-month forward pound and receive 2000 pounds three months later to fulfill the contract. Although the exchange rate at that time was1=1.50, at the time of delivery, he sold 2,000 pounds at the exchange rate of1=1.90 and received 3,800 dollars. Through this hedging behavior, Americans only lost $200, which is the smallest loss. If he doesn't hedge his value, he will lose 1000 USD.