Financial Knowledge

Several aspects in the analysis of foreign exchange Fundamentals

Why does the economic data affect the exchange rate? The economic data can reflect the current development of the domestic economy and the objective performance of the expected development in the future. The change of the exchange rate follows a principle (except for political factors), that is, where the interest rate is high, capital will be attracted, so as to achieve currency appreciation, and where the interest rate is low, capital will be released, so as to make the currency devalue.

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Financial Knowledge

Recognize gold margin!

Au (T + 5) transaction refers to the installment transaction with fixed settlement period, which is 5 working days (including the transaction date). The buyer and the seller establish the sales contract with a certain proportion of the deposit (15% of the total contract amount). The contract can not be transferred, but can only open a new position. The net position of the due contract, that is, the position after netting the sales contract in the same delivery period, must be delivered in kind. If one party of the buyer and the seller breaches the contract, it must pay the liquidated damages of 7% of the total contract amount of the other party.

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Financial Sharing

Schedule of international foreign exchange transactions

The following are the trading hours of each major trading market: New York market – est 8:00 a.m. to 4:00 p.m. London market – est 3:00 a.m. to 11:00 a.m. Tokyo market – est 8:00 p.m. to 4:00 a.m. Sydney market – est 7:00 p.m. to 3:00 a.m. the main trading markets have two overlapping trading periods, one is est 2:00 a.m. to 4:00 a.m., and the Asian and European markets overlap; The other is EST from 8:00 a.m. to 12:00 p.m. with overlapping markets in Europe and North America.

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Financial Sharing

US gold market

The gold market in New York and Chicago developed in the mid-1970s. The main reason is that after 1977, the dollar devalued, and the Americans (mainly corporate groups) made a rapid development of gold futures in order to hedge and increase investment value. At present, Comex and IMM are the largest gold futures trading centers in the world. The two exchanges have a great influence on the gold price in the spot market. Take the New York Mercantile Exchange (Comex) as an example. The exchange itself does not participate in the trading of futures.

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Financial Knowledge

The main factors influencing the fluctuation of foreign exchange rate

Another important factor affecting foreign exchange rate is political factor. Although the economic cycle is unpredictable in time and amplitude, it has been fully considered and applied in organizational life. In some countries, such as the United States, political factors are fixed, such as the determination of election day is not subject to change. But in other countries, such as the UK, the political cycle is relatively flexible, and the government has the right to choose the specific election schedule before the latest election deadline.

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Financial Sharing

London gold market

London’s gold market has a long history, which can be traced back more than 300 years. In 1804, London replaced Amsterdam, the Netherlands, as the center of the world’s gold trading. In 1919, the London gold market was officially established, and gold pricing was conducted twice a day in the morning and afternoon. The gold market price of the day is set by the five major gold banks, which has been influencing transactions in New York and Hong Kong. The main supplier of gold in the market is South Africa. Before 1982, London gold market mainly engaged in spot trading of gold.

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Financial Knowledge

Principles and characteristics of foreign exchange transactions

Foreign exchange market is the largest market in the world, and foreign exchange trading is also the financial management mode with the largest number of investors in the world. The essence of foreign exchange transaction is to exchange one country’s currency into another country’s currency, and investors can gain profits through the exchange rate between different countries’ currencies. The characteristics of foreign exchange trading are very obvious.

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