Basic knowledge of foreign exchange: how to calculate foreign exchange earnings?

With the development of social economy and the continuous improvement of people's living standards, people will use these idle funds to invest in order to achieve the phenomenon of currency preservation. People's most choice is to speculate in foreign exchange. Then to fry foreign exchange, we must first learn some basic knowledge of foreign exchange and how to calculate foreign exchange earnings, which is more conducive to our profits 。


Basic knowledge of foreign exchange
In fact, foreign exchange is a means of payment in foreign currency or in foreign currency that can be used for international settlement. The most important financial investment products in the world are foreign exchange, futures, funds, stocks, gold and bonds. It has a lot of investment advantages, such as two-way trading, and more opportunities. And it can be traded 24 hours a day. It can be traded from 8:00 on Monday to 4:00 a.m. on Sunday. The stock market is not operated by office workers, because it happens to be operated during the daytime when we go to work. And foreign exchange trading is the most favorable for Chinese investors, because it is calculated in Beijing time. Moreover, the investment is very small and the starting point is very low. The market is objective and fair, and is not easy to be manipulated. Foreign exchange is a free and convenient way of investment. Foreign exchange trading in the form of margin can be small broad. Therefore, the operation is particularly flexible and the transaction cost is low. It can best meet the needs of technical type. Moreover, the liquidity of the market is relatively high, and it is particularly easy to cash in real time. If the liquidity of funds is good, the relative risk will be reduced.

How to calculate the foreign exchange earnings
For example, take Europe and the United States as an example. At 1.11400, we enter the market with multiple orders and build a standard position. After that, the market goes to 1.11600. If we close the position and stop the profit, the profit = 200 * 1 = 100 US dollars. The third data of currency does not fluctuate by one point. You make a profit or loss of $100. Make a profit or loss of $10. I hope you can understand such examples.

The above are some statements about the basic knowledge of foreign exchange. I hope you can learn some knowledge, find some skills and get some money you want.

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