The foreign exchange market is a monetary mechanism for calculating the relative prices of various currencies and trading them. Individual or institutional investors buy one currency and sell another at the same time. Currency transactions are usually carried out in the form of currency pairs, that is, one currency is sold to obtain another currency, and marked by the following methods: EUR/USD. The exchange rate is determined by the market supply and demand (please pay attention to the official account of WeChat WeChat "Global Voice of Foreign Exchange" for details).
Foreign exchange traders predict the rise and fall of the value of one currency relative to another through speculation, so as to gain or suffer losses. Traders buy bullish currencies and sell bearish currencies. In other words, the value of a currency reflects the economic situation of a country compared with other countries. The foreign exchange market does not depend on a single economy. No matter whether a country's economy is rising or falling, traders can reduce the profits of the foreign exchange market by buying or selling money. The behavior of speculative trading directly depends on the trader's expectation of the future.