As the largest trading market in the world, foreign exchange trading is increasingly favored by domestic investors. Most institutional and individual investors participate in the foreign exchange market in a speculative way, which is closely related to the characteristics of foreign exchange speculative trading.

What are the characteristics of foreign exchange speculation?

1 There is a market but no market: take-away speculative trading is conducted through the network of merchants, which is global rather than a centralized and unified trading place like stock trading. The market is connected with advanced information systems in a recognized way. Traders do not have the membership of any organization, but they must gain the trust and recognition of the same industry. This foreign exchange trading market without a unified venue is called a market without a market.

2 Circular operation: Due to the different geographical locations of global financial centers, the Asian market, the European market and the American market have become a global foreign exchange market that runs continuously for 24 hours due to the time difference. 24-hour continuous operation provides an ideal investment place for investors, and investors can find the best trading opportunity without the obstacles of time and space.

Zero-sum game: the change of exchange rate is the decrease of one currency and the increase of another currency, and it is the transfer of wealth in the hands of different investors, and the total amount has not changed.

Speculators are an important part of the foreign exchange market. On the one hand, foreign exchange speculators have played an active role in preventing excessive exchange rate fluctuations and maintaining market vitality. On the other hand, excessive speculation is easy to disrupt the financial order.