Engaged in foreign exchange investors their intended purpose is to get profit, however how can be more easy success, or need to master what knowledge and so on, there will be some one problem after another. So what is the main issue of foreign exchange investment, that is, before the foreign exchange investment should need to understand and grasp what issues. Foreign exchange investment needs to master the basic reasons for foreign exchange transactions, foreign exchange trading is that a country's currency and other currencies have been exchanged. This is an immediate 24-hour trading market, forex trading begins each day in Sydney and along with the rotation of the earth, every financial center in the world of business, in order to, first to Tokyo, then London and New York. And the daily turnover of 5% is due to the company and government departments to buy or sell their products and services abroad, or must be converted into their own currency profits earned in foreign currencies. And another 95% of the deals were made to earn a profit or speculation.
Foreign exchange investment must recognize the exchange rate. Exchange rate popular speak is to a currency said the price of a currency for another, due to the different name of the world's money, currency, so a country's currency of other countries currency to set a rate of exchange, the exchange rate. The main factors that affect the exchange rate are: relative price levels, tariffs and quotas, preferences for domestic goods relative to foreign goods, and productivity.
The last is to adjust the trading mentality of foreign exchange investment. As the saying goes, the good people of enemy is yourself, as long as investors control their own state of mind, then you in the foreign exchange speculation has been successful in half, the rest of the other half pay to your technical analysis.
We are those foreign exchange speculation failures coefficient, always can't keep sane mind more prone to failure, do we need more rational and calm exchange, it is very easy to put himself into the abyss of failure can not extricate themselves.
Investors because of personal interests, so the spirit of long-term in a highly nervous state. If foreign exchange speculation is profitable, there is a little satisfaction to comfort. But if losses continue, even in the face of adversity, unnecessary mistakes happen again and again, this time to be careful, don't lose a sober and calm mind swell, the best choice is to put aside everything, from the city to rest.
At the end of a temporary loss, has become the past,when the mind has been calm, foreign exchange speculation has unloaded the ideological baggage. I believe that the investment efficiency will be improved. There is a saying, “Not the rest of the general is not a good general”, do not know how to recuperate, pull City impossible to defeat the enemy.
An important foreign exchange speculation is to maintain a calm heart and lose face, only the mind calm and peaceful trend to more accurately grasp the market it is possible to make the right decision to trade. Foreign exchange transactions can not throw the helve after the hatchet.
The margin trading is always very easy to induce investors to worry about personal gains and losses of tension and fear,we know that any bad psychology in foreign exchange transactions will bring bad effects to the transaction,so it is necessary to overcome this fear of trading psychology.
In the margin trading did not follow the transaction plan to provide a clear approach and the appearance of the signal,This is something to be afraid of.Traders are often tempted by some strange ideas,but this signal has not yet been issued,it is a strong sense of it,feel that this signal is bound to be issued,would not like to wait for a few hours, immediately approach.This is typically the temptation.A lot of reasons that cause traders to be tempted,as a long time not to do business, eager to recoup his losses or need money,these factors are unhealthy trading motives,once the transaction appears the state of the psychological nature of investors are affected,so it's not surprising to have fear.These factors always interact with each other and eventually cause investors to withdraw from the market.
In order to eliminate the fear of losing a margin trading opportunity, the first to eliminate all irrelevant considerations.After all, trading is not what you want to make a profit.The best way is to put in the rules of the game as clear as possible,and then focus on the trading signals given by these trading rules, to exclude other temptations.Trading plans can always help us to better regulate our behavior and gain more profits. In the foreign exchange margin trading market, you must wait for the right time to be successful .If something is wrong, don't come.Attitude must be very careful, waiting to be profitable.
There are always a lot of problems that need to be carefully considered by investors in margin trading. Confidence in markets and transactions is based on the correct analysis of the market and the scientific and reasonable plan.
Foreign exchange trading stops are one of the basic work to be done, but a lot of investors are not always sure of its specific use.Sometimes stops are easy to wear,this way too close or too far is not suitable for the settings, the impact of the stop should have the role of.
The stop loss order in the foreign exchange transaction is one kind when the buyer's offer or the seller's asking price is at a predetermined price,the argument of this directive is to require investors to own the current market performance and their own specific trading conditions a set of make.If an investor holds a position, a stop loss order can be set at the bottom of the current exchange rate.
Once the market price below the stop trigger price,the instruction will be activated, and the multi positions will be automatically closed. If the foreign exchange is held positions, that can be arranged above stops at the current price.
"Trailing stop" is a set of instructions that are set at the time of entry.The strategy is conducive to lock in profits. When the position becomes more and more profitable, by raising the stop loss trigger price,traders can ensure the market reversal down can achieve most of accounting income.But the way in which this stop is set in foreign currency trading is risky, that is too high may also not to the extent of exchange rate has been reversed.This time the stop loss is lost its meaning of existence. So if you do not have a relatively large grasp of the proposed investors do not use.
Stop problem is, in the ups and downs of the foreign exchange market,the exchange rate may break the stop loss trigger price,so that the stop loss orders can not be executed in a precise stop.
Foreign exchange trading is always a need for investors to pay attention to the problem.Because only the stop is smooth enough to give full play to its role in the protection of funds,but investors also want to know how to master certain limits. Stop too much too often is not a good thing,instead, it is possible to increase investor's transaction costs.
Foreign exchange margin trading and stock trading are two popular way to invest. What is the relationship between them then.
Time
Stock market trading there is a specific time. Forex trading is trading 24 hours a day. The world's leading three trading period: 8:00 am in Tokyo, Japan is opening. Closing at 3:00;3:00 pm Europe London opening. Closing at 10:00;8:30 pm New York opening, He received the next day at 3:30 am. After the close of the US market opened in Australia, But at 3: 00-8: 00 Tokyo opening auction rare.(Mentioned above are in Beijing to represent).
Number on
The stock market there are thousands of stocks,The foreign exchange margin trading,It is the most important currencies against the Australian dollar,Euro against the dollar,GBP to USD,US dollar against the yen,US dollar against the Swiss franc this five varieties. So you can concentrate on analysis to seize the opportunity.
Trading volume
Domestic stock market trading volume up to 30 billion yuan / day,The foreign exchange market because it is a global market,Including all central banks, banks, investment funds and large investment banks are trading here,Someone has to statistics daily turnover of 4 trillion US dollars / day,Anyone, including the Fed on prices is limited.Like the Japanese central bank intervention in the market often,But not about the trend of the yen,Can only play a temporary relief role, it is a good example.
Two-way
The stock market can only buy one-way opening up,Once lost, can not make money,To wait;In the currency markets,Whether foreign exchange rates up or down,They can be traded,You can either buy up to be the first to buy to buy up hedge positions and then fell.
Commission
In the foreign exchange margin trading,Investors Free commissions and fees.Since Forex buying and selling prices,The difference between the bid and ask prices is the spread,This is the transaction costs.
Easy to see foreign exchange margin trading has more obvious advantages,Its flexibility is one of its major features.Of course, investors can choose to do both investment,But the caveat is not to a trade-thinking go to another transaction.
Margin is the guarantee for the trading positions.With the deposit,Traders can take place with a small amount of net loans to or use of leverage,Financing for the transaction positions.Investors should note,The higher the margin,The greater the risks.
And competitors is different,NZXK GROUP based on real-time calculation of margin trading currencies,Margin requirements with market fluctuations in the exchange rate changes.
For non-US dollar base currency of the transaction,Margin required will be converted into US dollars according to market exchange rates.for example,Trading GBP 100,000 and required margin trading margin USD100,000 required different.
To manage risks.Traders must establish position limits.This limit depends on the trader to the funds may be.If your net worth is less than required to maintain all existing positions margin,Trading platform will automatically issue a margin call,Thereby minimizing risk.Regardless of the size and nature of how your account positions,All open positions will be liquidated immediately.
Also note the difference between the position of the day and overnight positions. Position refers to the day, at any time within a 24 hour period positions,And before 17:00 pm EST trading day closing open positions.Overnight positions refer to during normal business hours after 17:00 pm EST closing open positions.We refer to these positions at favorable interest rates extended automatically to the next trading day price.
Margin call
Means a broker or dealer to deposit additional funds or provide other guarantees,To increase the amount of the deposit,The trend is not in favor of your position to provide the necessary performance guarantees.
Trading Examples
Customer 2.0350 price to sell 100,000 units of GBP / USD.GBP / USD is quoted at 2.0350 / 2.0355.Select the account leverage ratio of 100:
1. The required margin of GBP 100,000 / 100 = GBP1,000.Since the current trading currencies against the US dollar non-base currency pair.The margin required will be converted to US dollars, included in accounts.GBP 1,000 X 2.03525 (trading currency for central parity 2.0350 / 2.0355) = $ 2,035.25.Margin is the deal required is $ 2,035.25.
Please note that the deposit will fluctuate with the market changes in real time.
Same,If the GBP / USD rose to 2.0700 central parity,The margin required to maintain your position also becomes $ 2,070.If the price fell to 1.9500,The required margin fell accordingly.
Forex investors aimed at entering the market is to obtain profits,Investors also expect.In the foreign exchange market, we need to know,Profit after all, still the minority.Know that we can become those few it? Adjust the mental state is the first condition.How you should adjust the mind? From the hand to the following:
1. A small leak will sink a great ship,Forbearance step backward.The foreign exchange market is erratic, The trend is not to be fixed,Whenever large data comes,The market will have a large or small change.And the market price movements, or after the rise is not formed overnight. Thus, the trend of the market did not see before,Never enter the market, so the trend misjudgment, and produce loss.
2. To overcome the greed and fear.Forex investment profit, enough is enough,Do not make money, but also want to make a little more.Also do not be afraid because of the transaction,Lost money for fear of losing more, it will produce this idea is a normal reaction.However, this reaction will affect your judgment for the market trend,Thereby affecting your trading operations.So foreign investment operation,We should overcome the psychological fear and greed, to keep a clear mind in the transaction.
3. In fact, the biggest enemy is themselves when trading. So you want to beat yourself psychologically.Foreign investment is a zero-sum game, Some of you people would necessarily profit loss,Market never make a mistake,Error can only be us. As investors, we must always bear in mind that. Most people buying prices rise prove. Prices fell indicated that most people sell.In the market we do not need to go against the majority, so in the end only cry himself.
