Types of foreign exchange investment and foreign exchange trading methods
Foreign exchange transactions can be mainly divided into cash, spot, contract spot, futures, options and forward transactions.
Specifically, cash transactions are transactions between tourists and people who need foreign exchange cash for other purposes, including cash and foreign exchange traveler's checks.
Spot trading is a transaction between big banks, and it is also a transaction between big banks acting as agents for big customers. After the transaction is concluded, the payment and delivery of funds shall be completed within two working days at the latest;
Contract spot trading is a way for investors to sign foreign exchange contracts with financial companies, which is suitable for public investment;
Futures trading is conducted at the agreed time and at the established exchange rate, and the amount of each contract is fixed; Option trading is an option to trade in advance whether to buy or sell a certain currency in the future;
Forward transactions are delivered on the date agreed in the contract, and the contract can be large or small, and the delivery period is flexible.
Basis of foreign exchange margin trading
Foreign exchange margin trading means that investors use the trust provided by banks or brokers to conduct foreign exchange transactions. It makes full use of the principle of leveraged investment, and it is a long-term foreign exchange transaction between financial institutions and between financial institutions and investors. In the transaction, investors only need to pay a certain margin to trade with a quota of 65,438+000%, so that those investors with small funds can also participate in foreign exchange transactions in the financial market. According to the level of foreign developed countries, the general financing ratio is maintained at more than 10-20 times. In other words, if the financing ratio is 20 times, investors can conduct foreign exchange transactions as long as they pay a deposit of about 5%. That is, investors only need to pay $5,000 to trade $65,438+$0,000,000.
Here is a simple example:
An investor wants to buy a real estate worth $65,438+0,000,000, but he only has $65,438+0,000,000 in cash. He used the money as a deposit for real estate and borrowed the rest from the bank. Therefore, the customer actually owns $65,438+00,000, or 65,438+0% of the real estate, while the bank owns 99%. After one year, the value of the real estate is 10 10000 USD. If the customer pays all the purchase price with his own property, then his profit in this investment is 1%. However, because he only invested $65,438+$00,000, he actually doubled all his property. His investment of $65,438+00,000 in real estate has increased by $65,438+00,000, which means that he has made a profit of 65,438+000%.