What are foreign exchange dealers and how to choose them?

I believe that friends in the investment sector should have some understanding of foreign exchange dealers. Today, I would like to give you a brief introduction of some relevant knowledge of foreign exchange dealers. If you are interested in this, you are welcome to have a look. It may be helpful for you.


Foreign exchange dealers
Foreign exchange dealers refer to the trading companies or individuals that trade foreign bills. Foreign exchange dealers use their own funds to buy and sell foreign exchange bills and obtain bid ask spreads. Most foreign exchange dealers are trust companies, banks and other concurrent institutions, and there are also companies and individuals specialized in this business.

How to choose foreign exchange dealers
1. The number of point difference. The spread is calculated in points, which is the difference between buying or selling currency at a specified point in time. Foreign exchange is not traded through the exchange center, so the spread will vary depending on the broker you use. Some online forex brokers have variable spreads, some have two spreads based on day and night. The spread of some brokers depends on the position of the market.
2. Leverage options. Leverage is the ratio of the total amount of money available for trading to your principal. For example, when your ratio is 100:1, your broker will lend you $100 for every dollar. Leverage is necessary in foreign exchange transactions because the price of the currency is broken down to the decimal. Before choosing brokers, we should pay attention to their leverage.

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