Foreign exchange speculation refers to foreign exchange transactions for profit. Speculators use exchange rate differences to buy cheap and sell expensive to earn the difference.
Features:
1, there is no market.
Foreign exchange trading is conducted through a dealer network without a unified operating market, unlike a centralized and unified place for stock trading. However, the foreign exchange trading network is global and has formed an unorganized institution. The market is connected with advanced information systems in a way that everyone agrees with. 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 "there is a market without a market". The global foreign exchange market trades trillions of dollars on average every day. Such a huge sum of money was cleared and transferred in this place which was neither centralized nor controlled by the central clearing system, and without the supervision of the government.
2. Cycle operation
Due to the different geographical locations of financial centers around the world, the Asian market, the European market and the American market have become a global foreign exchange market that operates 24 hours a day because of the time difference. At 8: 30 in the morning (subject to new york time), the new york market opens at 9: 30 in Chicago, at 0: 30 in San Francisco/KLOC-0, at 8: 30 in Sydney/KLOC-0, at 9: 30 in Tokyo/KLOC-0, at 20: 30 in Hong Kong and Singapore, at 2: 30 in Frankfurt and at 3: 00 in London. In this way, the foreign exchange market will become a day and night market, and it will only be closed on Saturday and Sunday and major festivals in various countries. This continuous operation provides an ideal investment place for investors, and investors can find the best trading opportunity without the obstacles of time and space. For example, if an investor buys yen in the new york market in the morning and the yen rises after the opening of the Hong Kong market in the evening, and the investor sells it in the Hong Kong market, then he can participate in trading in any market and at any time, no matter where the investor himself is. Therefore, the foreign exchange market can be said to be a market without time and space obstacles.
3, zero-sum game
In the stock market, if a stock or the whole stock market rises or falls, then the value of the stock or the whole stock market will also rise or fall. For example, the share price of Nippon Steel in Japan has dropped from 800 yen to 400 yen, so the value of all shares of Nippon Steel has also been reduced by half. But in the foreign exchange market, the fluctuation of exchange rate and the change of stock value are completely different, because the exchange rate refers to the exchange rate of two currencies, and the change of exchange rate means the decrease of one currency value and the increase of another currency value. For example, 22 years ago, 1 dollar was exchanged for 360 yen. At present, 1 US dollar is exchanged for 120 temporary RMB, indicating that the value of the yen is rising, while the value of the US dollar is declining. Judging from the total value, it will not increase or decrease. Therefore, some people describe foreign exchange trading as a "zero-sum game", more precisely, the transfer of wealth. In recent years, more and more funds have been invested in the foreign exchange market, and the fluctuation range of exchange rate has been expanding day by day, which has promoted the scale and speed of wealth transfer to become larger and faster. Based on the daily global foreign exchange turnover of10.5 trillion US dollars, the increase or decrease of 1% means that the capital of10.50 billion yuan will be changed to a new owner. Although the exchange rate of foreign exchange changes greatly, no currency will become waste paper. Even if a currency continues to fall, it will always represent a certain value unless it is abolished.