Since the reform and opening up, China and foreign countries have become more and more frequent, constantly expanding the depth and breadth of foreign transactions, and the scale of China's foreign exchange is also undergoing earth-shaking changes. At the beginning of the reform and opening up, China's foreign exchange reserves grew slowly, and in the 21st century, the growth rate of China's foreign exchange reserves began to accelerate, according to 2010, China's foreign exchange reserves ranked first among the world's economies, Japan ranked second, and Russia ranked third. To this day, there has been another peak in growth, and it remains in the first place. As a symbol of a country's economic and financial strength, foreign exchange reserves are the material basis for stabilizing the country's exchange rate and maintaining its international credibility.
The existence of foreign exchange does not change because of whose will, as long as there is a country where there is the existence of foreign exchange, foreign exchange is an indispensable tool for international economic exchanges, and plays an important role in promoting the development of the international economy. Without foreign exchange, it will not be possible to accelerate the international turnover and use of funds, and international economic, financial and financial exchanges will be hindered. And it is an important part of a country's financial economy. Therefore, the foreign exchange industry will not only not stop, but will become more and more open. Again, we can analyze it through the following aspects:
Therefore, no matter from the policy or market point of view, the rise and outbreak of the foreign exchange industry is the inevitable trend of national development, domestic foreign exchange will not stop, but will intensify, and with the continuous improvement of the national foreign exchange industry management system, the market will be more standardized and formalized, so that those "fishing in troubled waters" of the black platform has nowhere to hide, the improvement and popularization of the system, the awareness of investors' market risk prevention will also be improved, and the transparency of the investment market will be further strengthened.
12 advantages of forex investment:
1.24-hour trading.
Forex trading hours are available 24 hours a day, 5 days a week on most platforms. As mentioned earlier, the forex market is a huge intangible market, moving from Wellington, New Zealand to every financial center in the world every trading day. Despite this, investors can still find that the trading volume of the three major gold foreign exchange markets in Tokyo, London and New York accounts for the main part of the global foreign exchange trading volume. Since the London and New York markets overlap by almost 4 hours, these four hours are also the most frequent time of day for forex trading. In GMT, the forex market starts at 10:00 pm last Sunday and ends at 10:00 pm on Friday of the same week.
12 advantages of forex trading.
2.High liquidity.
The average daily trading volume of the foreign exchange market is $5 trillion! The number of participants in the forex market is very large compared to other financial markets, which also makes the liquidity very high. No matter how large the order is, it can be digested by the market quickly, which also greatly avoids manipulation and chaos.
In addition, there is no limit on foreign exchange trading, so you don't have to worry about not being able to ** or selling.
12 advantages of forex trading.
3.There are few trading varieties.
The trading of the foreign exchange market is very similar to the ** market - buy low and sell high, but the advantage of foreign exchange trading is that there are fewer trading varieties, and investors do not have to choose investment targets from thousands of companies and industries, which can save a lot of time for variety selection.
12 advantages of forex trading.
4.Fairness and transparency.
In some markets, large market makers, such as institutional investors, can take advantage of information asymmetry or deep pockets to improve their chances of making profits. However, in the forex market, due to the huge liquidity, it can maintain sufficient transparency, as well as fairness to any investor. For example, the US non-farm payrolls report (shown in the chart below) released on the first Friday of each month usually causes some volatility in the foreign exchange market. In terms of the time and channel of data acquisition, every investor, regardless of the size of their funds, is the same. Therefore, the fairness and transparency of transactions in the foreign exchange market can be better reflected.
12 advantages of forex trading.
5.Volatility.
Because the forex market has a huge trading volume, this advantage also drives the volatility of the forex market. The more volatile a market is, the more trading opportunities there are. Although the forex market is highly volatile, the volatility of each group of currency pairs varies when broken down. Therefore, it is recommended that investors should choose the trading currency that suits their risk strategy. For example, the Australian dollar and the US dollar are relatively less volatile, which is suitable for novices; While major currency pairs such as EURUSD, GBPUSD, etc., are more volatile and suitable for sophisticated traders. Of course, this needs to be analyzed in conjunction with the fundamentals of the time.
12 advantages of forex trading.
6.Margin trading.
Margin trading (i.e. leveraged trading) is generally allowed in forex trading. Trading on margin means that the size of your position can be well in excess of your account capital. For example, if you use a margin rate of 1%, it means that when the initial capital is only $1,000, you can leverage the equivalent of $100,000**.
Of course, the use of leverage in any market will bring *** The forex market is no exception. Your profit or loss on any trade is related to the size of your position. Therefore, if you use too much leverage and the trade does not go in the direction you want, you could face huge losses beyond your imagination.
7.Low threshold.
Generally speaking, the trading threshold for entering the forex market is lower than entering other markets. It usually only costs a few hundred dollars, and some platforms can even trade for as little as $50.
8.Long and short, two-way trading.
Some ** markets can only be long, not short, so when the market is in the process of falling, investors have nothing to do. The foreign exchange market is able to double trade, regardless of whether the market rises or falls, investors can invest profitably.
9.Limited risk.
Investors can preset the corresponding stop loss and take profit prices at the same time as establishing **, or set them after opening a position. In this way, the risk of each trade is determined at the time of opening the position, and there is no unlimited risk.
10.Low transaction costs.
Although the minimum amount to open an account is determined by the brokerage company you choose, as a trader, it is not always the case that the lower the cost, the better, and finding a balance is more important. Another aspect of low cost is reflected in transaction costs. The cost of trading in the forex market is simply the spread between currency pairs (i.e., the difference between the ** price and the ask price offered by the brokerage company). If your trading is moving in the direction you want, the tighter the spreads mean the sooner you can make a profit.
11.There is no minimum contract limit.
The forex market is not traded within an exchange, but an over-the-counter transaction, so the number of trades does not have a fixed contract size limit like the one. Forex traders do not have a fixed trading lot limit, and can flexibly choose the trading lot size, from the lowest 001 Hand to Infinity. This gives traders a tool to control their own risk.
12.No ** exchanges.
The forex market is an over-the-counter market, so there are no exchanges or regulators. Many central banks only intervene when necessary, but this is also uncommon and only occurs during extreme market times**. And these extreme markets are usually predicted by the market, and they have changed. This decentralized and unregulated marketplace is able to avoid any sudden shocks. And in **, if a company unexpectedly announces a dividend or the company loses money, then the stock price changes dramatically. Insider trading in the foreign exchange market is still very rare, because there are no insiders in the foreign exchange market.
As an international capital investment market, the foreign exchange market today has far exceeded other financial markets, and has now become the world's largest financial market, and has been widely recognized by investors around the world.
In order for forex technical charts to reflect market trends more intuitively, it is necessary to use various technical indicators (various auxiliary lines). There are four main categories of forex technical indicators: trend indicators, ** indicators, volume indicators, and bills. Williams indicator.
Trend indicators
They reflect the trend of a particular trading symbol in different time dimensions, helping to preliminarily determine whether it is ** or **.
Indicators
Refers to the direction of a particular symbol that fluctuates around the center line and helps to approach the phase. It's especially good for making decisions when the market isn't trending clearly, guiding you when to ** or sell.
Volume indicator
Because forex is a global market, global trading volume changes rapidly, so it is difficult to calculate, therefore, it uses the ** time in a specified time period to represent the trading volume. In other words, the volume indicator represents the amount of change for each time period. It can reflect the fluctuations of the forex market in different time periods. By comparing market trades** and volumes in the same time dimension, it can help you infer market trends.
Bill. Williams indicator.
Here are some of the indicators in the trading strategy of Bill Williams, a famous trader. By grasping the psychological changes in the market and using the previous *** future**.
It is important not to be greedy to study too many technical indicators. Forex trading strategies don't just rely on technical analysis. Many technical indicators are interrelated. Focus on a few mainstream metrics that work for you.
In the foreign exchange market, the sharp rise or fall will not rise or fall like a straight line, and the rise will always be adjusted if it rises too quickly, and it will also fall too sharply. The magnitude of the adjustment or ** is more complicated and not easy to grasp, so it is necessary to be extra cautious after the exchange rate rises sharply by two or three hundred points or five or six hundred points, and it is better to wait and see than to follow up rashly.