2. The change of a country's exchange rate is mainly influenced by three basic factors: inflation, balance of payments and interest rate level. Inflation is a long-term influencing factor. If inflation is too high, it means that the value of a country's currency will decline, which will lead to a decline in the exchange rate, that is, currency depreciation. The balance of payments is a medium-term factor affecting the exchange rate. If a country has a surplus in international payments, it means that there are sufficient sources of foreign exchange, and the demand for foreign exchange is low at this time, so the exchange rate falls; If a country has a deficit in its balance of payments, the demand for foreign exchange will rise at this time, thus pushing up the exchange rate. Interest rate is a short-term factor affecting the exchange rate. The inconsistency of interest rates between the two countries will lead to speculators' funds flowing and arbitrage between the two countries. For a time, the demand for money in countries with higher interest rates will rise in the short term, which will lead to an increase in exchange rates. In addition to these factors, economic growth rate, government intervention, political situation and market expectations will all affect the exchange rate.
The exchange rate is not simply determined by the state or the central bank. The exchange rate between the two countries is determined by the purchasing power of their currencies. The internationally well-known exchange rate theories mainly include international lending theory, purchasing power evaluation theory, exchange psychology theory and asset market theory, and the specific theories are not developed here.
3. Interest rate is the use cost of funds. If a country's economy overheats, it will raise interest rates. In this case, on the one hand, the credit line granted by the central bank to commercial banks will be reduced, and the amount of funds borrowed by commercial banks will also be reduced. On the other hand, the cost of using funds will increase, and the interest that borrowers need to pay for borrowed funds will increase, thus reducing the investment enthusiasm of the market and further inhibiting investment.
The function of interest rate can be mainly described in the following four aspects: (1) interest rate and resource allocation. (2) Interest rate and savings, the level of interest rate directly affects the size of savings, which in turn affects consumption. (3) Interest rate and investment. If the interest rate is low and the cost of using funds is low, the borrower can use a large amount of funds to invest only by paying a small part of interest, which amplifies the leverage effect of the use of funds and plays a role in taking small bets. (4) Interest rate and economic adjustment. Interest rate is also an important means for the country to adjust its economy, which can guide the country's policy orientation and is an efficient department for capital flow.
For example, if the interest rate is lowered, enterprises only need to pay a little loan interest and invest in the form of loans, so they can invest without money, so that low interest rates will expand their investment. For a person, if the interest rate is low, there will be little interest earned by the bank. No one wants to keep money in the bank. People will invest it, enter the stock market or make more profits in other ways, and some money will flow to the consumer goods market, and people will go shopping.
4. Hedge funds are financial funds that combine financial options, financial futures and other derivatives with financial institutions, and take high-risk speculation as a means to make profits. It is an investment fund. Hedge funds mainly use short selling, leverage operation, program trading, swap and arbitrage trading to hedge, transpose and hedge, and obtain huge profits. Hedge fund has become synonymous with a new investment model. That is, based on the latest investment theory and extremely complicated financial market operation skills, we should make full use of the leverage of various financial derivatives and take high risks. Pursuing a high-yield investment model.
5. Bulk spot trading does not belong to futures trading. The biggest difference between spot trading and futures trading is that spot trading needs delivery. After the futures trading expires, you only need to do the opposite operation and close the position. Futures is essentially a standardized contract, which belongs to financial instruments or a kind of financial instruments and is a way of hedging.
Because of my limited level, I can only answer this, I hope it will be useful to you.