Although more and more people are starting to invest in the foreign exchange market to make profits from it, we should also know that not everyone can make money by speculating in foreign exchange. Whether or not to make money depends on whether investors operate properly. How can we make money by speculating in foreign exchange?
1、 What is speculation in foreign exchange
Foreign exchange is to trade currency, to earn the difference between currencies. In fact, foreign exchange and stocks are the same, but they are more stable than stocks. In short, the fluctuation of loss is small. But don't think that foreign exchange can play by yourself, just contact foreign exchange, do not know the way inside, it is easy to end the money.
2、 How to make money by frying foreign exchange
Foreign exchange trading is the same as other investments. It makes money by "buying low and selling high". However, the traditional way of investment is only one-way transaction, while foreign exchange trading is a two-way transaction, which is more "high selling and low buying" than general unilateral investment. The common "buy low and sell high" is easy to understand. Generally, it is to buy when the price is relatively low, and then sell when the price goes up, so as to obtain the price difference. However, for foreign exchange trading, when you expect one currency to appreciate against another, you can buy the former ahead of time and sell the latter. "Sell high and buy low" can only be realized in a two-way trading market, and the foreign exchange market is such a market. Specifically, if you expect the euro to depreciate against the U.S. dollar, you can sell the euro dollar currency pairs. If you really do, as you expect, the euro depreciates, you can buy the euro dollar pair at that time and you can make a profit.
In fact, their principle is the same, through their own expectations, predict the trend of the currency, through trading to earn the middle price difference. For foreign exchange speculation, that is margin trading, because the difference between buying and selling is relatively small, the leverage principle is introduced. As long as investors pay a certain amount of margin, they can enlarge their trading volume through leverage, so as to obtain a large amount of funds. Of course, there is also a high risk at the same time. Therefore, investors should pay attention to risk control when trading foreign exchange.
Foreign exchange is a kind of creditor's rights which can be used when the balance of payments deficit is maintained by the monetary administrative authorities (central bank, monetary management agency, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds of the Ministry of finance, short-term and long-term government securities.
They include foreign currency, foreign currency deposits, foreign currency securities (government bonds, treasury bonds, corporate bonds, stocks, etc.), foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.).
In fact, there are many methods and principles involved in speculation in foreign exchange. If you want to make money by speculating in foreign exchange, you have to rely on investors to explore their own ways. However, we should always bear in mind that there are risks in foreign exchange speculation and we must learn to stop losses in time.
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