Speculation foreign exchange tutorial complete version

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The first lesson best forex rebate company rebatesforexbroker fxrebatecentral foreign exchange cashback forex completely do not understand foreign exchange transactions? Please start here 1, foreign exchange Foreign exchange, foreign currency or foreign currency means of payment that can be used for bestforexrebatecompanyternational settlements Chinas "Foreign Exchange Management Regulations" promulgated in 1996, Article III of the specific content of foreign exchange as follows: foreign exchange refers to: ① foreign currency, including banknotes, minted ② foreign currency payment certificates, including bills, bank payment certificates, postal savings certificates, etc. ③ foreign currency marketable securities, including Government bonds, corporate bonds, stocks, etc. ④ special drawing rights, European currency units ⑤ other foreign currency-denominated assets 2, exchange rates and markups Exchange rate, also known as the exchange rate, refers to the price of one countrys currency in another currency, or the ratio between the two currencies In the foreign exchange market, the exchange rate forexrebatecommission displayed in five digits, such as: EUR0.9705 JPY119.95 British pound GBP1.5237 CHF1.5003 The smallest unit of change in the exchange rate is a point, that is, the last digit of a digital change, such as: EUR0.0001 JPY0.01 GBP0.0001 CHF0.0001 According to international practice, usually use three English letters to express the name of the currency, the above Chinese name after the English that is the currency The exchange rate is marked in two ways: direct and indirect (1) direct method The direct method, also known as the markup method, is to calculate how many units of foreign currency (1, 100, 1,000, 10,000) as the standard to calculate how many units of domestic currency should be paid is equivalent to calculating how much local currency should be paid for the purchase of a certain unit of foreign currency, so it is called the markup method, including China In the vast majority of countries in the world are currently using the direct markup method in the international foreign exchange market, the yen, Swiss franc, Canadian dollar, etc. are direct markup method, such as the yen 119.05 that a dollar to 119.05 yen Under the direct markup method, if a certain unit of foreign currency converted into the amount of local currency more than the previous period, it means that the value of foreign currency rose or the value of the local currency fell, called the foreign exchange rate rose; conversely, the If you want to use less than the original local currency that can be exchanged for the same amount of foreign currency, which indicates that the value of foreign currency fell or the value of the currency rose, called the foreign exchange rate fell, that is, the value of foreign currency and the exchange rate is proportional to the rise and fall (2) indirect valuation method Indirect valuation method, also known as receivable valuation method it is a certain unit (such as 1 unit) of the national currency as the standard, to calculate the receivable a number of units of foreign currency in the international foreign exchange market On, the euro, pound sterling, Australian dollars and so on for the indirect valuation method such as the euro 0.9705 that a euro to 0.9705 U.S. dollars in the indirect valuation method, the amount of the domestic currency remains unchanged, the amount of foreign currency with the value of the domestic currency contrast changes and changes if a certain amount of local currency can be exchanged for the amount of foreign currency less than the previous period, which indicates that the value of foreign currency rose, the value of the local currency fell, that is, the foreign exchange rate rose;. On the contrary, if a certain amount of local currency can be exchanged for foreign currency more than the previous period, it means that the value of foreign currency decreases and the value of local currency increases, that is, the foreign exchange rate decreases, that is, the value of foreign currency and the exchange rate increases and decreases in inverse proportion The quotation in the foreign exchange market is generally a two-way quotation, that is, the quotation party simultaneously quotes its own bid and ask price, and the customer decides the direction of buying and selling The smaller the spread between the bid and ask price, the smaller the cost for the investor To say that means the smaller the cost of inter-bank transactions, the normal spread of the offer for 2-3 points, banks (or dealers) to the customers offer spread varies greatly depending on the situation, the current foreign margin trading offer spread is basically 3-5 points, Hong Kong in 6-8 points, the domestic bank trading in 10-40 points ranging 3, the foreign exchange market There are many kinds of financial commodity markets in the world, but In summary, can be divided into: stock market, interest market (including bonds, commercial paper, etc.), the gold market (including gold, platinum, silver), futures market (including grain, cotton, oil, etc.), options market and foreign exchange market, etc. Foreign exchange market, refers to the trading places engaged in the purchase and sale of foreign exchange, or a variety of different currencies to exchange between each other foreign exchange market exists because: & uuml; trade and investment Importers and exporters pay one currency when they import goods and receive another when they export goods This means that they receive and pay different currencies when they settle their accounts Therefore, they need to exchange part of the currency they receive into a currency that can be used to buy goods Similarly, a company that buys foreign assets must pay in the currency of the country in question, so it needs to exchange The exchange rate between the two currencies changes as the supply and demand between the two currencies changes A trader who buys one currency at one rate and sells it at another, more favorable rate, can make a profit Speculation accounts for about the vast majority of transactions in the foreign exchange market üHedging Because of fluctuations in the exchange rate between the two currencies in question Those companies that own foreign assets (such as factories) may suffer some risk when they translate these assets into their domestic currency When foreign assets denominated in a foreign currency remain constant in value over time, a company can eliminate this potential gain or loss by hedging if the exchange rate changes and translates the value of this asset in the domestic currency This is the execution of a foreign exchange transaction that results in just Offset by changes in exchange rates and the loss or gain of foreign currency assets The history of the foreign exchange market as an international capital speculation market is much shorter than that of the stock, gold, futures and interest markets, however, it has developed at an alarmingly rapid pace Today, the foreign exchange market has reached a daily turnover of 1.5 trillion U.S. dollars, and its size has far exceeded that of other financial commodity markets such as stocks and futures, and has become the largest in the world today Single financial market and speculative market Since the birth of the foreign exchange market, the foreign exchange market exchange rate volatility is growing in September 1985, 1 U.S. dollar for 220 yen, and in May 1986, 1 U.S. dollar can only be exchanged for 160 yen, in 8 months, the yen appreciated 27% in recent years, the volatility of the foreign exchange market is even greater, September 8, 1992, 1 pound for 2.0100 U.S. dollars November 10, 1 pound to 1.5080 U.S. dollars, in just two months, the exchange rate of the pound against the dollar fell more than 5,000 points, depreciation of 25% Not only that, at present, the foreign exchange market daily exchange rate volatility is also increasing, a day up or down 2% to 3% is commonplace September 16, 1992, the pound against the dollar fell from 1.8755 to 1.7850, the pound A one-day drop of 5% Because the foreign exchange market fluctuations are frequent and volatile, creating more opportunities for investors, attracting more and more investors to join the ranks Second lesson on the characteristics of the foreign exchange market In recent years, the foreign exchange market for more and more people favored, become the new darling of international investors, which is closely related to the characteristics of the foreign exchange market itself The main characteristics of the foreign exchange market is : 1, there is a market without a field The financial industry of Western industrial countries basically have two systems, namely, centralized trading central operation and no unified fixed place of business network stock trading is through the exchange trading like the New York Stock Exchange, the London Stock Exchange, Tokyo Stock Exchange, respectively, the United States, the United Kingdom, Japan, the main trading places of stocks, centralized trading of financial instruments, its quotation, trading hours and settlement Procedures have unified regulations, and the establishment of a peer association, the development of the code of practice investors are through the brokerage company to buy and sell the required commodities, which is there is a market and a market and foreign exchange trading is carried out through the unified operation of the market of business network, it is not like the stock exchange has a centralized and unified location but, foreign exchange trading network is global, and the formation of unorganized organizations, the market is agreed by all The way and advanced information systems are linked, traders also do not have any organization membership, but must obtain the trust and recognition of the same industry this no unified site of the foreign exchange market is called the market without a field global foreign exchange market every day an average of trillions of dollars in transactions so huge huge amounts of money, is in this neither a centralized place and no central clearing system control, as well as no government supervision Under the completion of clearing and transfer 2, the cycle of operations Due to the different geographical locations of the global financial centers, the Asian market, the European market, the American market because of the time difference, even into a 24-hour continuous operation of the global foreign exchange market at 8:30 a.m. (subject to New York time) New York market open, 9:30 a.m. Chicago market open, 10:30 a.m. San Francisco open, 18:30 a.m. Sydney open, 19:30 a.m. Tokyo open, 20:30 Hong Kong, Singapore open, 2:30 am Frankfurt open, 3:30 London market open so 24 hours non-stop operation, the foreign exchange market has become a day and night market, only Saturday, Sunday and the major holidays in various countries, the foreign exchange market will be closed this continuous operation, to provide investors with no time and space barriers to the ideal investment place, investors can Looking for the best time to trade for example, investors who buy the yen in the morning on the New York market, the evening after the opening of the Hong Kong market, the yen rose, investors sell in the Hong Kong market, no matter where the investor himself, he can participate in any market, any time of buying and selling Therefore, the foreign exchange market can be said to be a market without time and space barriers 3, zero-sum game In the stock market, a certain stock or the entire Stock market rise or fall, then, the value of a certain stock or the entire stock market stock value will also rise or fall, for example, Japans Nippon Steel stock price from 800 yen fell to 400 yen, so that the value of the entire stock of Nippon Steel was also reduced by half However, in the foreign exchange market, the exchange rate fluctuations expressed in the value of the amount of change and the amount of change in the value of the stock is completely different, which is Since the exchange rate refers to the exchange ratio of the two currencies, the change in the exchange rate is also a decrease in the value of one currency and an increase in the value of another currency For example, 22 years ago, 1 U.S. dollar to 360 yen, at present, 1 U.S. dollar to 120 temporary dollars, which means that the value of the yen rose, while the value of the U.S. dollar fell, in terms of the total value, change to and fro, will not increase the value, nor will it decrease the value Therefore, some people describe Foreign exchange transactions is a zero-sum game, more precisely the transfer of wealth in recent years, into the foreign exchange market more and more funds, the exchange rate volatility is expanding, prompting the scale of wealth transfer is also growing, the speed is also growing faster, to the global foreign exchange daily 1.5 trillion U.S. dollars in transactions to calculate, up or down 1%, that is, 150 billion of funds to be replaced by a new owner although the foreign exchange rate changes a lot, but In addition, any kind of currency will not become waste paper, even if a currency keeps falling, however, it will always represent a certain value, unless the announcement of the abolition of the currency Lesson 3 Introduction to foreign exchange transactions Foreign exchange is accompanied by international trade, foreign exchange transactions are international settlement of debts and liabilities between the tools but, in the last decade or so, foreign exchange transactions not only in the number of exponential growth, but also in the substance of Foreign exchange transactions are not only a tool for international trade, and has become the most important international financial commodity foreign exchange transactions are increasingly diversified with the changing nature of foreign exchange transactions foreign exchange transactions can be divided into cash, spot, contract spot, futures, options, forward transactions, etc. Specifically, cash transactions are travelers and for various other purposes need foreign currency cash between Spot transactions are transactions between large banks, as well as large banks acting as agents for large customers, after the sale and purchase agreement, the latest within two business days to complete the receipt and delivery of funds; contract spot transactions are investors and financial companies to sign a contract to buy and sell foreign exchange, suitable for the public investment; futures transactions are agreed upon time, and according to the exchange rate has been determined to carry out The amount of each contract is fixed; option trading is the future whether to buy or sell a certain currency options and advance trading; forward trading is according to the contract in the agreed date for delivery, the contract can be large or small, the delivery period is also more flexible From the number of foreign exchange transactions, by the international trade and foreign exchange transactions accounted for the proportion of the overall foreign exchange transactions continue to decline, according to statistics, the current Ratio of only about 1% then, it can be said that the mainstream of foreign exchange trading is now investment, is to win in foreign exchange rate fluctuations for the purpose of profit, therefore, spot, contract spot and futures trading in foreign exchange transactions accounted for a larger proportion of 1, spot foreign exchange transactions (live trading) spot trading is between large banks, as well as large banks as agents of large customers of the transaction, the sale and purchase agreement after the transaction, at the latest in two business days This article mainly introduces the domestic banks for individuals to launch, suitable for public investors to participate in personal foreign exchange trading personal foreign exchange trading, also known as foreign exchange treasure, refers to the individual entrusted to the bank, with reference to the international foreign exchange market real-time exchange rate, the purchase and sale of a foreign currency into another foreign currency trading behavior because the investor must hold a full amount of foreign currency to be sold, in order to trade, more popular than the international Since December 1993, Shanghai ICBC started to act as an agent for personal foreign exchange trading business, with the substantial growth of personal foreign exchange deposits of Chinese residents, the introduction of new trading methods and changes in the investment environment, personal foreign exchange trading business has developed rapidly and has become the largest investment market in China except for stocks. As of now, ICBC, agriculture, China, construction, traffic, and six banks have carried out personal foreign exchange trading business, Everbright Bank and Pudong Development Bank is also actively preparing for the expected bank on personal foreign exchange trading business competition will be more intense, the service will also be more perfect, foreign exchange investors will enjoy better service domestic investors, with the foreign exchange in hand, to any of the above banks for account opening Procedures, deposit funds, you can through the Internet, telephone or counter way to foreign exchange trading to understand more detailed information, please refer to this website live trading section 2, contract spot foreign exchange trading (gold trading) contract spot foreign exchange trading, also known as foreign exchange margin trading, gold trading, virtual trading, refers to the investor and professional engaged in foreign exchange trading financial companies (banks, dealers or brokers), signed Commissioned to buy and sell foreign exchange contracts, pay a certain rate (generally not more than 10%) of the transaction margin, you can buy and sell 100,000, hundreds of thousands or even millions of dollars of foreign exchange according to a certain financing multiplier Therefore, this contract form of trading is only a certain price of foreign exchange to make a written or oral commitment, and then wait for the price to rise or fall, and then make the settlement of the sale, from the change in the price difference to obtain profits The risk of loss, of course, because of this investment required capital can be more or less, so, in recent years has attracted many investors to participate foreign exchange investment in the form of contracts, the main advantage is to save the amount of investment in the form of contracts to buy and sell foreign exchange, the investment amount is generally not higher than 5% of the contract amount, and the profit or loss is calculated by the amount of the entire contract foreign exchange The amount of the contract is determined according to the type of foreign currency, specifically, the amount of each contract is 12,500,000 yen, 62,500 pounds, 125,000 euros, 125,000 Swiss francs, the value of each contract is about 100,000 U.S. dollars The amount of each contract for each currency is not changeable according to the investors request Investors can buy or sell several or more contracts according to their deposit or The amount of margin, buying and selling several or dozens of contracts in general, investors can use the margin of 1,000 U.S. dollars to buy and sell a contract, when the foreign currency rise or fall, the investors profit and loss is calculated according to the amount of the contract that is 100,000 U.S. dollars Some people believe that the form of foreign exchange contracts to buy and sell than the actual risk, but we carefully compare the two will not be difficult to see the difference, please See the following table for details Assumptions: in 1 U.S. dollar to 135.00 yen when buying Japanese yen buy real buy real sell margin form to buy 12,500,00 yen need US,592.59US,000.00 If the yen exchange rate rose 100 points profit US0.00US0.00 profit rate 680/92,592.59 = 7.34% 0680/1000 = 68% If the yen exchange rate fell 100 points loss US0.00US0.00 Exchange rate falls 100 points Loss US0.00US0.00 Loss rate 680/92,592.59=7.34%0680/1000=68% From the above table, we can find that the actual purchase and sale of the form of margin trading in the amount of profit and loss is exactly the same, the difference is the difference in the amount of money invested by the investor, the actual purchase and sale of the investment of more than 90 More than 10,000 U.S. dollars to buy and sell 12,500,000 yen, and the use of margin form only 1,000 U.S. dollars, the difference between the two input amount more than 90 times Therefore, take the contract form for investors to invest small, output, more suitable for the public investment, can use a smaller capital to win more profits However, take the form of margin trading foreign exchange is particularly important to note the problem is that, because the margin Although the amount is small, but the actual prying capital is very large, and the daily volatility of the foreign exchange rate is very large, if the investor in the judgment of foreign exchange trends, it is easy to cause the margin of the total loss of the above table, for example, the same 100 points of loss, the investors 1,000 U.S. dollars lost 680 U.S. dollars, if the yen continues to depreciate, the investor did not take timely measures, it is necessary to cause not only Margin all lost, but also may have to invest additional Therefore, high returns and high risk is equivalent, but if the investor method is appropriate, the risk can be managed and controlled In the contract spot foreign exchange trading, the investor may also get considerable interest income contract spot foreign exchange interest method, not to the actual amount of the investors investment, but to the amount of the contract calculation For example, the investor invested 10,000 U.S. dollars for Margin, bought a total of 5 contracts of pounds, then, the calculation of interest is not calculated by the investor invested 10,000 U.S. dollars, but by the total value of the five contracts of pounds, that is, the contract value of pounds multiplied by the number of contracts (62,500 pounds * 5), so that the interest income is very considerable Of course, if the exchange rate does not rise but fall, then, although the investor took the interest, how can not offset the loss of The loss of the price change of both finance and interest does not mean that the purchase and sale of any kind of foreign currency interest can be received, only to buy high-interest foreign currency interest income, selling high-interest foreign currency is not only no interest income, the investor must also pay interest because the interest rate of each country will often be adjusted, therefore, the payment or collection of interest on different currencies in different periods is not the same, the investor should be engaged in foreign currency trading dealers announced the interest There are two formulas for calculating interest, one for foreign currencies with direct pricing, like the Japanese yen, Swiss franc, etc., and the other for foreign currencies with indirect pricing, such as the euro, British pound, Australian dollar, etc. The formula for calculating interest on the Japanese yen and Swiss franc is: Contract amount*1/entry price*interest rate*days/360*number of contracts The formula for calculating interest on the euro and British pound is: Contract amount*entry price*interest rate*days/360*number of contracts The formula for calculating interest on the euro and British pound is: Contract amount*entry price*interest rate*days/360*number of contracts Number of days / 360 * number of contracts Contract spot foreign exchange trading method, both in the low price first buy, to be sold after the price rises, but also in the high price first sell, wait for the price to fall before buying the price of foreign exchange is always climbing or falling in the waves of this can first buy and first sell method, not only in the rising market profit, but also in the falling situation to make money investors who can use this method flexibly, if So, how do investors calculate the profit and loss of contract spot foreign exchange trading? There are 3 main factors to consider First, to consider the changes in foreign exchange rates investors from the fluctuations in the exchange rate to make money can be said to be the main way of profit or loss of contract spot foreign exchange investment is calculated by the number of points, the so-called points is actually the exchange rate, for example, 1 U.S. dollar to 130.25 yen, 130.25 yen can be said to be 13025 points, when the daily dollar fell to 131.25 131.25 when the yen, that is, down 100 points, the yen at this price, each point represents 6.8 U.S. dollars yen, pounds, Swiss francs, etc. Each point of each currency represents a different value in the contract spot foreign exchange trading, the more points earned the more profit, the less points lost the less loss for example, investors buy 1 contract at the price of 1.6000 pounds, when the pound When the pound rose to 1.7000, the investor sold the contract, that is, to earn 1,000 points of the pound, a profit of up to $6,250 while another investor bought the pound at 1.7000, the pound fell to 1.6900, he immediately dumped the contract in hand, then, he only lost 100 points, that is, lost $625 Of course, the number of points earned and lost is directly proportional to the amount of profit and loss　　Secondly, to consider the interest expenses and earnings this article has described first buy high interest foreign currency will get a certain amount of interest, but first sell high interest foreign currency will have to pay a certain amount of interest if it is a short term investment, such as the end of the day buying and selling, or in one or two days, there is no need to consider the interest expenses and earnings, because one or two days of interest expenses and earnings is very small, the impact on profit or loss is very small for medium and long term investors For example, the investor first sold pounds at 1.7000, a month later, the price of pounds is still in this position, if the sale of pounds to pay 8% interest, the monthly interest payments up to 750 U.S. dollars this is also a lot of expenditure from the current situation of the general population investment, there are many investors on the interest income to see more For example, when the pound fell, the investor bought the pound, even if a contract to collect interest of $ 450 per month, but a month the pound fell 500 points, in points lost 3,125 U.S. dollars, the interest income can not make up for the loss brought about by the fall of the pound so, investors should put the trend of foreign exchange rates Finally, to consider the expenses of the commission investors to buy and sell contracts foreign exchange through financial companies, therefore, investors have to calculate this part of the expenditure to the cost of the financial companies to charge the commission is based on the number of investors to buy and sell contracts, rather than the number of profits or losses, therefore, this is a fixed amount of the above three aspects, constitute Calculation of the contract spot foreign exchange profit and loss calculation method yen, Swiss franc profit and loss calculation formula for: contract amount * (1/sale price - 1/buy price) * the number of contracts - commission +/- interest and the euro, pounds profit and loss calculation formula for: contract amount * (sell price - buy price) * the number of contracts - commission +/- interest Foreign exchange margin trading, as an investment tool In Europe and the United States, Japan, Hong Kong, Taiwan and other countries and regions is legal, traders and trading practices are regulated by the government To learn more about the situation, please see the margin trading section of this website 2, futures foreign exchange trading futures foreign exchange trading refers to the agreed date, according to the exchange rate has been determined, the use of U.S. dollars to buy and sell a certain amount of another currency futures foreign exchange trading and contract spot trading have common points and there are The difference between the contract spot foreign exchange trading is through the bank or foreign exchange trading company to carry out, futures foreign exchange trading is in the special futures market for the current, the worlds futures market are: Chicago futures market, the New York Mercantile Exchange, Sydney futures market, Singapore futures market, London futures market futures market to include at least two parts: one is the trading market, the other is the clearing center The buyer or seller of futures in the exchange after the transaction, the clearing center becomes its counterparty, until the actual delivery of futures contracts futures foreign exchange and contract foreign exchange transactions both certain links, but also certain differences, the following from the perspective of the two comparisons, the specific operation of the futures foreign exchange futures foreign exchange transactions and the number of contracts spot foreign exchange transactions is exactly the same futures foreign exchange trading is at least a Contract, the amount of each contract, different currencies have different provisions, such as a contract for ￡ 62,500 pounds, the yen for 12,500,00 yen, the euro for 125,000 euros Futures foreign exchange contract delivery date has strict provisions, which the contract spot foreign exchange transactions are not futures contract delivery date provisions for the year in March, June, September, December the third Month, December of the third week of Wednesday which, like, only four contracts in a year delivery day, but other times can be bought and sold, can not be delivered, if the delivery day the bank is not open for business will be postponed for a day Futures foreign exchange contract prices are used a foreign currency is equal to how many U.S. dollars to express, so, in addition to the British pound, futures foreign exchange prices and contracts foreign exchange rate is exactly the reciprocal, for example, December Swiss franc futures price of 0.6200, the inverse of exactly 1.6126 Futures foreign exchange trading and no interest payments and income, whether buying or selling any kind of foreign currency, investors do not get interest, of course, do not have to pay interest Futures foreign exchange trading method and the contract spot foreign exchange exactly the same, both can first buy after selling, can also first sell after buying, that is, two-way choice 3, online foreign exchange trading Since 1997, with the development of the Internet, online foreign exchange margin trading has taken the world by storm, becoming a popular way of foreign exchange trading, not only interbank transactions have begun to use online methods, individuals are increasingly involved in the foreign exchange market through the Internet The development of online foreign exchange trading, breaking the geographical limitations, so that the original must rely on local brokers to participate in foreign exchange transactions of individuals and Small institutional investors, can be more convenient for foreign exchange investment In December 2000, the United States passed the Futures Modernization Act, this bill requires all foreign exchange dealers must be registered in the American Futures Association (NFA) and the U.S. Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM), and accept the daily supervision of the above agencies, within the deadline does not meet the qualifications or has not been Approved foreign exchange operators will be ordered to stop operating the introduction of this bill, so that online foreign exchange margin trading on the track of standardized development At present, has been through the United States CFTC (Commodity Futures Trading Commission) registered foreign exchange dealers are (in order of time) FXCM, MGFG, GAINCAPITAL, CMS-FOREX, etc.

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