In 2023, the foreign exchange market has become the focus of attention in the financial world, and many participants, including investment banks, enterprises and individuals, have joined this field, hoping to achieve wealth growth through the foreign exchange market. There are many reasons why the foreign exchange market can become the "new darling" in the financial field. First of all, the trading volume of the foreign exchange market is huge, making it the largest financial trading market in the world. According to statistics, the average daily trading volume of the foreign exchange market is about 6 trillion US dollars, and the highest daily trading volume has reached 11 trillion US dollars. This figure is not only half of China's annual GDP, but also far more than all other financial markets in the world, including the bond, market and market combined, and its growth rate is as high as 120% per year.
The trading mechanism of the foreign exchange market is also different from other financial markets, it does not have a fixed trading venue, nor does it limit the qualifications of participants, achieving true fairness and justice. The foreign exchange market is mainly conducted through the OTC (over-the-counter) method, which means that most transactions are done through a non-centralized method such as ** or the Internet, and this "market without market" characteristics makes the foreign exchange market more flexible and open.
Unlike one-way trading in the market, the foreign exchange market allows two-way trading, that is, investors can buy up or down through the market trend, so that investors have the opportunity to make a profit regardless of whether the market is or not. This two-way trading mechanism brings a unique profit model to the foreign exchange market, that is, the strategy of buying low and selling high, thus attracting more participants to enter the market, hoping to achieve asset appreciation through foreign exchange trading.