Financial Knowledge

How do novices make firm foreign exchange transactions?

June 17, 2020

All friends who are interested in foreign exchange investment know that foreign exchange transaction types include foreign exchange margin transaction and foreign exchange firm offer transaction. Speculation in foreign exchange market is also called “stare”, that is, foreign exchange investors always observe the trend of foreign exchange market, without any slack. The exchange rate is changing all the time. Foreign exchange investors need to know the real-time market situation of foreign exchange market and learn how to look at the market. In particular, it is very important for novice foreign exchange speculators to learn how to look at the market. The process of looking at the market is also a good occasion and opportunity to summarize and use the knowledge gained by investors.

Real foreign exchange transaction is a unique transaction mode in China. After an individual opens a transaction account in a bank, he can make transactions through the network, telephone, bank counter and bank self-service terminal, which is called real foreign exchange transaction. The advantage of low starting point of real foreign exchange investment is convenient for more investors to participate. At the same time, for new investors, they can gradually adapt to and understand the foreign exchange market and reduce investment risk by gradually increasing investment.

It’s hard for new investors to choose when facing multiple currency pairs. How to deal with the entry-level foreign exchange speculation? Generally speaking, the novice can choose the direct transaction, that is, the transaction between the US dollar and another freely convertible foreign currency. New foreign exchange investors generally choose us dollar as their investment currency. This is because the U.S. dollar is the most widely used currency in the world due to its strong liquidity. More importantly, there are many data and information sources about the U.S. dollar in the market, which is convenient for new investors to master more information, make market judgments in time and make relevant investment decisions.

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