2. Central Bank. The central bank is the ruler or supervisor of the foreign exchange market.
3. Foreign exchange broker. Foreign exchange brokers are intermediaries between the central bank, foreign exchange banks and customers, and they have very close ties with banks and customers.
4. customers. In the foreign exchange market, all companies or individuals who conduct foreign exchange transactions in foreign exchange banks are customers of foreign exchange banks.
What is foreign exchange trading, how the foreign exchange market works, and the participants in foreign exchange trading are the exchange of one country's currency with another. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks.
"Foreign exchange trading" means buying one currency in a pair of currencies at the same time and selling the other currency. Foreign exchange is traded in the form of currency pairs, such as euro/dollar or dollar/yen foreign exchange market. You can ask if you don't understand. Remittance/country. International, Xiao Wu.
Who are the market participants in foreign exchange trading? What are the investment tools? 1. Super Bank
In view of the scattered spot foreign exchange market, it is the world's largest bank that determines the foreign exchange rate. These large banks "set" the buying/selling spreads that we like or hate according to the supply and demand of money.
These large banks are collectively referred to as the interbank foreign exchange market. These banks provide large-scale foreign exchange transactions for their customers and themselves every day. Some super banks include UBS, Barclays Bank, Deutsche Bank and Citibank. You can say that the interbank market is a foreign exchange trading market.
2. Large commercial companies
The purpose of the company entering the foreign exchange market is to carry out business. Therefore, before Apple can import electronic equipment from Japan, it must first convert US dollars into Japanese yen. Because the scale of foreign exchange transactions of large commercial companies is much smaller than that of the inter-bank market, such market participants usually conduct foreign exchange transactions with commercial banks.
Mergers and acquisitions between large companies will also cause fluctuations in the exchange rate in the foreign exchange market. In international cross-border mergers and acquisitions, large-scale currency exchange will be involved, which may cause exchange rate fluctuations.
3. The State and the Central Bank
Countries and central banks around the world, such as the European Central Bank, the Bank of England and the Federal Reserve, also regularly participate in the foreign exchange market. Like enterprises, national institutions also participate in the foreign exchange market for the purpose of settling international trade and managing their foreign exchange reserves and other businesses.
At the same time, when the central bank adjusts interest rates to fight inflation, this behavior of the central bank will also lead to fluctuations in the exchange rate of the foreign exchange market. The central bank can influence the value of money through interest rates. When the central bank intervenes in the foreign exchange market, the foreign exchange market will even fluctuate greatly, either directly or indirectly. Sometimes, the central bank thinks that its currency price is overvalued or undervalued, and they will sell/buy in the foreign exchange market to change the exchange rate trend.
4. Speculators
This is probably the voice of speculators. The foreign exchange transactions of speculators account for 90% of the total foreign exchange transactions. These speculators are of different types and sizes.
Retail foreign exchange broker
Since there is no entry threshold, anyone can sign a contract with a foreign exchange broker and open a foreign exchange account for foreign exchange transactions. There are basically two forms of brokers:
1, a market maker, which means that these institutions can set their own foreign exchange trading prices;
2. Electronic communication network platform. ECN adopts the best buying and selling price provided by interbank market institutions.
Market maker
Market makers are the cornerstone of the foreign exchange trading market. Retail market makers mainly repackage large contracts obtained from foreign exchange wholesalers into smaller contracts for sale, thus injecting liquidity into the market. If there is no retail market maker, it will be difficult for individuals such as Zhang San or Li Si to conduct foreign exchange transactions.
Electronic communication network
Electronic communication network (ECN) is another name of foreign exchange trading platform, which can automatically match orders at the price specified by customers. These stipulated prices come from different market makers, banks and other traders who use ECN. No matter when an order takes effect, you can find the best price on ECN platform.
What is foreign exchange trading and what are its investment advantages? Foreign exchange transaction is the exchange of one country's currency with another. Different from other financial markets, the foreign exchange market has no specific location and no central exchange, but transactions between banks, enterprises and individuals through electronic networks. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other.
Advantages of foreign exchange trading:
1. Two-way transaction, more opportunities to make money. Foreign exchange can buy up or down, as long as you choose the right trading direction, you can make money.
2.24-hour all-weather trading. It starts at 8 am (Beijing time) every Monday and ends at 4 am on Saturday. You can buy and sell at any time. The stock market can only be traded at certain times of the day, usually from 9: 30 am to 3: 00 pm, which is not suitable for office workers.
3. Foreign exchange trading is most beneficial to China investors. The prime time for foreign exchange trading is 8 pm Beijing time 12 pm. This period is the daytime in the European and American markets, and it is also the time when the market transactions are the most active and the exchange rate changes the most. During this period, China investors have plenty of time to invest in foreign exchange transactions.
4. Less investment and low starting point. You can open a foreign exchange speculative account with a minimum investment of $50 in the mini account. Successful investors can get dozens of times of investment profits a year.
The market is objective and fair, and it is not easy to be manipulated. The daily turnover of the foreign exchange market is trillions of dollars. It has an advanced and scientific online trading platform, and the market and data are open. It is the most transparent market.
6. Foreign exchange is a free and convenient investment method. As long as you have a computer and connect to the Internet, you can buy and sell your own business anytime and anywhere, which is suitable for young people who like to work independently and freely. Many people choose foreign exchange trading as their lifelong career.
7. Foreign exchange transactions are conducted in the form of margin, which can be large or small. According to statistics, one third of American billionaires are successful in foreign exchange investment. For example, Soros, Buffett and others are the most classic legends of successful foreign exchange speculation, ranking among the best in the world rich list.
8. Foreign exchange margin trading is to use the principle of financial leverage to operate funds in the foreign exchange market by expanding the credit line. At present, the leverage of foreign exchange margin trading can reach 1000 times of the principal, and the investment of 1000 dollars can clinch a deal of 65438+ million dollars. Margin trading is a double-edged sword. If risk management is not done well, the chances of investors losing money are as great as their profits.
9. Trading strategies can be released at any time according to market conditions, which is extremely flexible. Even if the direction is wrong, stop loss and backhand immediately, the loss is limited, and the profit is still extremely huge. There are many orders to choose from, such as current price, fixed price, stop loss, stop winning, 2 choices 1, etc.
10. The transaction cost is low. In the stock market, you have to pay brokerage commission, transaction service fee and tax. The over-the-counter trading structure of the foreign exchange market, especially the efficient electronic trading system, reduces most of the transaction and settlement costs and transaction costs.
1 1. In the foreign exchange market, currency combinations are limited. You can concentrate on these currency combinations, analyze them at low cost, and quickly grasp their pulse.
12. Foreign exchange transactions can best meet the needs of technology investors. Different from stock and futures investment, the trend of money is more regular, and it is easier to make profits with technical analysis. A large number of economic data will be published regularly, which is also convenient for investors to make fundamental analysis. It is easier to grasp the trends of different countries than to analyze the changes of companies in the stock market. The operation of a country is usually more stable than that of a company, which means it is easier to predict the direction of economic development.
13. The foreign exchange market is highly liquid, and the T+0 system is implemented, which is easy to cash. For investors, whenever and wherever any news happens, investors can respond immediately. Investors can also flexibly plan the time of entry or exit. Compared with the foreign exchange market, the scale of other financial markets is much inferior, such as poor liquidity, such as the futures market is difficult to clinch a deal, and the price is easy to jump and difficult to grasp. The foreign exchange market is always liquid and can be traded at any time. The foreign exchange real-time quotation system can ensure that all market orders, limit orders or stop-loss orders are completely closed.
14. The exchange rate changes violently and there is a lot of room for winning or losing. Investment and speculation are both appropriate. If you want to invest steadily, you can reduce the leverage of funds.
15. All kinds of transactions can be conducted by telephone or online.
16. Unlike futures and stock warrants, there is no delivery period, and foreign exchange contracts can be held for a long time.
17. The foreign exchange market has good liquidity. The stock market and futures market can't buy and sell when the daily limit or the daily limit is down, which reduces many investment opportunities and causes losses. In the foreign exchange market, you can buy and sell at any time according to the real-time foreign exchange rate. The foreign exchange market will not suddenly rise or fall. Let you make the right decision calmly in the face of any unexpected events.
18.
What's the difference between foreign exchange and foreign exchange trading? Foreign exchange transaction is the exchange of one country's currency with another. There are many different countries in the world with different currencies. For example, it is US dollars in the United States, British pounds in Britain, Japanese yen in Japan, euro in Germany and France, and so on. The exchange behavior between these different currencies is "foreign exchange transaction", also known as "foreign exchange trading".
Foreign exchange trading is the buying and selling of currency pairs. Buying one currency means selling another. For example, Euro/USD or USD/JPY.
At present, the common types of foreign exchange transactions in the market can be mainly divided into cash, spot, contract spot, futures and forward transactions.
What are the misunderstandings in foreign exchange trading? 1. Impatience and blind trading. This often happens to Huimin friends who have just entered the market. After entering the market, I always feel that if I don't trade, I won't enter the market and I won't do technical analysis. They are anxious as soon as they buy it.
Myth 2: If you don't stop loss, the deeper the set. This is a common phenomenon in foreign exchange transactions. There are many points that can stop loss, but they are all missed, and the result is deeper and deeper.
Myth 3: covet small profits and go astray. Some people think they are smart, so we should pay special attention to those friends who always make profits by crossing Taiwan.
Myth 4: escape from reality and have illusions. Seeing that the currency in my hand keeps falling, I don't actively stop loss and take corresponding measures, but I refuse to admit the cruel reality. I always think about the point I bought, thinking that only the point I bought can reflect my true attributes, and dreaming that one day the exchange rate will return to the point I bought.
Myth 5: Afraid of trading and missing opportunities. As the saying goes, once bitten, twice shy. Some people can't stand setbacks, but they can't afford to lose: losing money in trading makes them afraid of trading, even don't believe in themselves, and dare not intervene when they meet good opportunities.
Myth 6: If you think well, you will never do well. This is also a common phenomenon. Why do some people always succeed in simulation operation is because they can do it if they think of it. In the actual transaction, most people think of it and can't do it. When they really created opportunities, they missed them. This is why the phrase that appears most frequently in the foreign exchange market is: "I wish I had bought it."
Who is the biggest participant in foreign exchange trading? Some retail investors and even some college students want to get rich overnight, and their values are distorted.
Hope to adopt, thank you!
What are the functions of Niuhui foreign exchange trading software? First of all, Niuhui uses MT4 trading software.
Advantages of MT4:
The user interface is simple and convenient
Trading foreign exchange, contracts for differences, futures and other types of products.
Multilingual platform
Real-time customer account summary, including net account value, floating profit and loss, etc.
Use intelligent trading system, built-in indicators and user-defined indicators to operate.
Use more than 50 indicators and icon tools to complete technical analysis.
Make different self-defined indicators and different time periods.
What is the difference between foreign exchange trading and stock trading? 1, foreign exchange transactions are mostly through the margin mode, which can be traded 24 hours a day, 5 days a week, and is also suitable for wage earners who go to work during the day; The stock market can only trade at certain times of the day.
2. Foreign exchange trading adopts T+0 mode, which can be traded in two directions, and both buying up and buying down can make a profit. At the same time, investors can set their own stop-loss positions during the trading process to effectively control risks. If you conduct foreign exchange trading in APJFX, you can buy and sell on the same day, and any variety can be long or short; But stock trading adopts T+ 1 system. After buying on the same day, you can't sell on the same day, which is a one-way transaction. You can only buy up and not down, and the risk is much greater than that in the foreign exchange market.
3. In the foreign exchange market, the combination of currencies is limited, which enables investors to better concentrate and better analyze the market trend of foreign exchange. There are too many kinds of stocks, so it is very difficult for investors to choose stocks, which is not conducive to concentration.
4. The two-way trading mechanism in the foreign exchange market is another feature superior to the stock market. When the stock market is in a bear market, investors can do nothing but watch themselves quilt cover; In the foreign exchange market, investors can make profits by buying up and down, and they can trade at any time.
5. The investment target of foreign exchange market is the international economy, while the investment target of stock is the performance of listed companies. As we all know, it is impossible for a country's currency exchange rate to drop to zero, and listed companies may face the risk of bankruptcy. From this perspective, foreign exchange trading has more investment potential than stock trading.
Get involved in foreign exchange trading, but do you know what are the advantages of foreign exchange trading? First, foreign exchange can be traded in both directions, and investors' chances of making money increase. In foreign exchange trading, investors can buy up or down, as long as they choose the right trading direction, they can make money, unlike the rapid changes in the stock market, where profit opportunities are not easy to grasp. Second, the trading time is long and the trading method is flexible. Foreign exchange trading can be carried out all day, and the opening hours of the foreign exchange market are from 5 pm Sunday to 5 pm Friday, and trading can be carried out 24 hours a day. In addition, investors only need a networked computer to understand the dynamics of the whole foreign exchange market and trade according to the situation. Third, the initial capital of foreign exchange investment is low. Foreign exchange investors don't need much money when they first enter the foreign exchange market. Fourth, small and wide, more profitable. At present, foreign exchange trading usually takes the form of margin trading, and investors can trade through trading leverage. Of course, this also makes more profits and faces greater risks. This is also the most attractive answer that traders who have just entered the foreign exchange market get when consulting the advantages of foreign exchange trading. Five, the foreign exchange market is more objective and fair, and it is rarely affected by human operation. The daily trading volume of the foreign exchange market is about $3.2 trillion. Scientific and advanced trading platform and fair and transparent market quotation are also important factors to attract more people to enter the foreign exchange market.