What is foreign exchange?
Foreign exchange refers to various payment methods of foreign currency and foreign currency or foreign currency debt settlement.
The IMF's explanation is: "foreign exchange is the Monetary Authority (central bank, monetary authority, exchange stabilization fund and Ministry of Finance)
Debt that can be used in the form of bank deposits, treasury bills, long-term and short-term government bonds in the balance of payments deficit.
Why invest in foreign exchange?
The most liquid financial market in the world
The average daily trading volume of the foreign exchange market is as high as US $5.3 trillion. Market liquidity is extremely high, several times higher than the stock market of any country. The active offer gives it investment potential.
24-hour non-stop trading, two-way trading is more flexible
Foreign exchange trading is a 24-hour market. New Zealand was the first to open up, then Sydney, then Tokyo, London and New York. Investors can trade from Monday morning to Saturday morning. There are more opportunities for profit. The working class does not have to lose the opportunity to create wealth because of the loss of daytime working hours. Foreign exchange trading is the purchase of one currency and the sale of another. If investors are optimistic about the trend of a certain currency, they can choose to buy in the market; if they are short of the trend of a certain currency, they can choose to sell in the market.. Investment opportunities are more flexible and abundant, and there are investment opportunities in both the market and the market.
The fairest and most transparent trading market in the world
Foreign exchange prices are affected by macroeconomic factors, such as politics, military affairs, economics, supply and demand, interest rates, stock markets, economic environment and data, policy decisions, various political factors and major events set by local central banks. These factors are not manipulated by individual investors or groups. Investors in foreign exchange transactions are distributed all over the world, and foreign exchange prices are quoted according to international practice and the situation of international money market. It is difficult to obtain insider information and insider trading, and it is difficult to manipulate the market. In addition, the global foreign exchange market transaction volume is very large, it is difficult to have a single price manipulation. Investors can trade in a fair environment.
High liquidity
The foreign exchange market is one of the largest financial markets in the world economy. Market participants include banks, commercial institutions, central banks, investment banks, hedge funds, governments, money issuers, note issuing banks, multinational organizations and retail investors. Therefore, the foreign exchange market is highly liquid and investors do not have to bear the investment risk caused by the lack of trading opportunities.
Easy to trade
Foreign exchange transactions on the market mainly use online trading platform to place orders directly. The online trading platform provided by the company has complete functions, and provides foreign exchange market information and relevant trend information. Transaction operation is convenient and simple.
Because of these advantages, the foreign exchange market has attracted a large number of investors to invest and trade.